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Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost. system. its predetermined overheod rate includes $1,000,000 of foxed overhead in the numerator and 50,000 direct labor-hours in the denominator, The compary purchased (with cash) and used 35,000 yords of raw moteriats at a cost of $10.30 per yard. Its direct isborers worked 20,250 hours and were paid a total of $290,500. The company started and completed 8,600 units of finished goods during the period. Bowen's standard cost card for its only product is as follows: Required: 1. When recording the raw material purchases a. The Raw Moterials inventory will increase (decreose) by how much? b. The Cash will increase (decrease) by how much? 2. When recording the raw materials used in production: a. The Raw Materlals inventory will increase (decrease) by how much? b. The Work in Process inventory will increase (decreese) by how much? 3. When recording the direct labor costs added to production: a. The Work in Process inventory will increase (decrease) by how much? b. The Cash with increase (decrease) by how much? 4. When epplying fixed manufacturing ovethead to production, the Work in Process inventory will increase (decrease) by how much? 5. When transferring manufacturing costs from Work in Process to Finished Goods, the Finished Goods inventory will increase (decrease) by how much? a. The Raw Materials inventory will increase (decrease) by how much? b. The Cash will increase (decrease) by how much? 2. When recording the raw materials used in production: a. The Raw Materials inventory will increase (decrease) by how much? b. The Work in Process inventory will increase (decrease) by how much? 3. When recording the direct labor costs added to production: a. The Work in Process inventory will increase (decrease) by how much? b. The Cash will increase (decrease) by how much? 4. When applying fixed manufacturing overhead to production, the Work in Process inventory will increase (decrease) by how much? 5. When transferring manufacturing costs from Work in Process to Finished Goods, the Finished Goods inventory will increase (decrease) by how much

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