Reference no: EM133186409

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

Raw materials $72,500

Work in process $18,200

Finished goods $46,500

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 $15.50 per direct labor-hour was based on a cost formula that estimated $620,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year.

a. Raw materials were purchased on account, $628,000.

b. Raw materials used in production, $598,000. All of of the raw materials were used as direct materials.

c. The following costs were accrued for employee services: direct labor $570,000; indirect labor $150,000; selling and administrative salaries $266,000.

d. Incurred various selling and administrative expenses [e.g., advertising, sales travel costs, and finished goods warehousing}, $418,000.

e. Incurred various manufacturing overhead costs {e.g., depreciation, insurance, and utilities], $470,000.

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

g. Jobs costing $1,717,900 to manufacture according to their job cost sheets were completed during the year.

h. Jobs were sold on account to customers during the year for a total of $3,225,000. The jobs cost $1,727,900 to manufacture according to their job cost sheets.

Required - What is the cost of goods available for sale during the year?