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$7.$ What is the ending balance in Work in Process?

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$[$The following information applies to the questions displayed below.$]$

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

as follows:

Raw materials $ $65,000$

Work in process $ $20,400$

Finished goods $ $52,800$

The company applies overhead cost to jobs using direct labor$-$hours. For this year, the company's predetermined

overhead rate of $$15\mathrm{.}75$ per direct labor$-$hour was based on a cost formula that estimated $$630,000$ of total manufacturing

overhead for an estimated activity level of $40,000$ direct labor$-$hours. The following transactions were recorded this year:

a$.$ Raw materials were purchased on account, $$646,000.$

b$.$ Raw materials used in production, $$608,000.$ All of of the raw materials were used as direct materials.

c$.$ The following costs were accrued for employee services: direct labor, $$580,000$; indirect labor, $$150,000$; selling and

administrative salaries, $$317,000.$

d$.$ Incurred various selling and administrative expenses $($e$.$g$.,$ advertising, sales travel costs, and finished goods

warehousing$),$ $$376,000.$

e$.$ Incurred various manufacturing overhead costs $($e$.$g$.,$ depreciation, insurance, and utilities$),$ $$480,000.$

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 $$1,765,050$ 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 $$2,970,000.$ The jobs cost $$1,775,050$ to

manufacture according to their job cost sheets.

What is the gross margin for this year?

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$[$The following information applies to the questions displayed below.$]$

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

as follows:

Raw materials $ $65,000$

Work in process $ $20,400$

Finished goods $ $52,800$

The company applies overhead cost to jobs using direct labor$-$hours. For this year, the company's predetermined

overhead rate of $$15\mathrm{.}75$ per direct labor$-$hour was based on a cost formula that estimated $$630,000$ of total manufacturing

overhead for an estimated activity level of $40,000$ direct labor$-$hours. The following transactions were recorded this year:

a$.$ Raw materials were purchased on account, $$646,000.$

b$.$ Raw materials used in production, $$608,000.$ All of of the raw materials were used as direct materials.

c$.$ The following costs were accrued for employee services: direct labor, $$580,000$; indirect labor, $$150,000$; selling and

administrative salaries, $$317,000.$

d$.$ Incurred various selling and administrative expenses $($e$.$g$.,$ advertising, sales travel costs, and finished goods

warehousing$),$ $$376,000.$

e$.$ Incurred various manufacturing overhead costs $($e$.$g$.,$ depreciation, insurance, and utilities$),$ $$480,000.$

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 $$1,765,050$ 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 $$2,970,000.$ The jobs cost $$1,775,050$ to

manufacture according to their job cost sheets.

What is the gross margin for this year?

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$[$The following information applie

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