Reference no: EM132122480

Question - Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows:

Raw materials $66,000 Work in process$33,600 Finished goods$38,400

The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:

1. Raw materials were purchased on account, $684,000.

2. Raw materials used in production, $646,400. All of of the raw materials were used as direct materials.

3. The following costs were accrued for employee services: direct labor, $490,000; indirect labor, $150,000; selling and administrative salaries, $319,000.

4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000.

5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.

6. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.

7. Jobs costing $1,623,300 to manufacture according to their job cost sheets were completed during the year.

8. Jobs were sold on account to customers during the year for a total of $3,547,500. The jobs cost $1,633,300 to manufacture according to their job cost sheets.

What is the ending balance in Raw Materials?