Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy Equipment for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy Equipment for use in North Sea oil fields. The company uses a job-order costing system that Applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $200,000. b. Raw materials used in production (all direct materials), $185,000. c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remain- der related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (975 hours).. Indirect labor... . $230,000 $90,000 Selling and administrative salaries... $110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. g. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Cost of goods manufactured for the year, $770,000. j. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to Their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials.. Work in Process. Finished Goods. .... $30,000 $21,000 $60,000 That should be a minimum of 7 pages, plus supporting material, and preferably no more than 10 pages. Steps are as follows: • First of all, Differentiate the basic costing terms, and costing methods including job order costing, variable costing, absorption costing and activity based-costing and Identify Direct Material, Indirect material, Direct Labor, indirect Labor cost for your business. • Prepare inventory costing sheet and Calculate Breakeven in units and dollars. . And also calculate units required for a certain target profit and Calculate cost of goods manufactured, cost of goods sold, and Income Statement under variable and absorption costing Calculate per unit cost under variable and absorption costing and further assume that you are manufacturing the products with distinct features and as per the customer requirements. So calculate the cost of goods manufactured by using job order costing. Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy Equipment for use in North Sea oil fields. The company uses a job-order costing system that Applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $200,000. b. Raw materials used in production (all direct materials), $185,000. c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remain- der related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (975 hours).. Indirect labor... . $230,000 $90,000 Selling and administrative salaries... $110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. g. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Cost of goods manufactured for the year, $770,000. j. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to Their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials.. Work in Process. Finished Goods. .... $30,000 $21,000 $60,000 That should be a minimum of 7 pages, plus supporting material, and preferably no more than 10 pages. Steps are as follows: • First of all, Differentiate the basic costing terms, and costing methods including job order costing, variable costing, absorption costing and activity based-costing and Identify Direct Material, Indirect material, Direct Labor, indirect Labor cost for your business. • Prepare inventory costing sheet and Calculate Breakeven in units and dollars. . And also calculate units required for a certain target profit and Calculate cost of goods manufactured, cost of goods sold, and Income Statement under variable and absorption costing Calculate per unit cost under variable and absorption costing and further assume that you are manufacturing the products with distinct features and as per the customer requirements. So calculate the cost of goods manufactured by using job order costing.
Expert Answer:
Answer rating: 100% (QA)
Differentiation of Costing Terms and Methods Costing terms Direct Cost It is a cost that can be directly identified with a particular product or service For example direct materials and direct labor c... View the full answer
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
Posted Date:
Students also viewed these accounting questions
-
With the rising cost of energy, the Government has decided to provide a monetary relief to households to help with fuel bills. Assume that it is considering two alternatives. The first is a subsidy...
-
The Portfolio entry should be a minimum of 250 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources. For this weeks portfolio...
-
Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length. 1. What are the fundamental characteristics of money market debt instruments? Explain why...
-
Use normal job-order costing to calculate the balance in the ending Work-in-Process account and the Cost of Goods Sold account on 31 December 20X3 after any necessary adjustment(s). Sweet Memories...
-
A 2.0-kg object has an acceleration of 1.5 m/s2 at 30o above the x-axis. Write the force vector producing this acceleration in component form.
-
Apply integration to the expansion to prove that for -1 < x < 1, 00 1 1. (1)"x" = 1-x+x - t 1 + x n=0 In(1 + x) = 00 n=l (1)"-1x" n x2 2 3 14 4 +
-
Under what circumstances should development costs be excluded in determining DD&A? Under what circumstances should a portion of proved developed reserves be excluded in determining DD&A? Is the...
-
Cost data for T. Clark Manufacturing Company for the month ending April 30, 2008, are as follows: Inventories April 1 April 30 1.Prepare a cost of goods manufactured statement for April...
-
Given: AABC is isosceles mZACB=120, CM = 12 mZBMC=60 Find: AB C A B M
-
Lockhart&Stark, a VC firm, has invested $ 3 million for 30% of the company, Banana. Palm, a leader in the same industry with Banana, is considering to acquire Banana. Answer the questions in the...
-
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing...
-
Consider the array int[][][] x = {{{1,1,1},{2,2} }, { {3} }, { {4,5}, {6,7} }, }; How many arrays are allocated on the heap in total? A
-
A manual assembly line produces a small appliance whose work content time = 41 min. Production rate = 41 units/hr, repositioning time = 8 sec, line efficiency = 96%, and balancing efficiency = 93%....
-
Truman, an HR Manager, was recently hired at Fang corp. to help make the organization a more attractive place to work. Whereas their competitors have the resources to offer expensive benefits and...
-
A pile driver, shown in the diagram, of mass 500 kg is allowed to fall from rest through a distance of 1.9 m on to a 300 kg concrete pile to drive it into the ground.Each impact drives the pile into...
-
Discuss the Grand Canyon 1956accident and the 1960New York accident with respect to air traffic control. What ATC system improvements resulted from these accidents?Do you see a pattern of ATC...
-
Required: Record the following stock for the Penny Company: A) On May 2, 2016, Penny issued 150,000 shares of $10 par common stock for $1,800,000. B) On January 5, 2019 Penny purchased 6,000 shares...
-
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
-
Matching Funds with Transactions. Choose the letter of the sample transaction in the right-hand column that would most likely be reported in the fund listed in the left-hand column. Fund Example 1....
-
What is a pass-through agency fund and under what conditions is it appropriate to use such a fund?
-
Financial Trend 1onitoring SystemReserves. The City of Scottsdale, Arizona, provides the following report on the following page about its reserve policies on page 12 of its October 2007 financial...
-
What are the three cash positions for a company?
-
What is a value date?
-
What is a concentration account?
Study smarter with the SolutionInn App