Froya Fabrikker A / S of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea
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Question:
Froya Fabrikker AS of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a joborder costing system that applies manufacturing overhead cost to jobs based on direct laborhours. Its predetermined overhead rate was based on a cost formula that estimated $ of manufacturing overhead for an estimated allocation base of direct laborhours. The following transactions occurred during the year:
a Raw materials purchased on account, $
b Raw materials used in production all direct materials $
c Utility bills incurred on account, $ related to factory operations, and the remainder related to selling and administrative activities
d Accrued salary and wage costs:
tableDirect labor hours$
tableDirect labor hours$
Prepare journal entries to record the preceding transactions
post your entries to Taccounts dont forget to enter the beginning inventiry balances above
prepare a schedule of cost of goods manufactured
A prepare a jouranl entry to close manufacturing overhead account to cost of goods sold
B prepare a schedule of cost of goods sold
prepare an income statement
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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