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 oll 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 $329,000 of manufacturing overhead for an estimated allocation base of 940 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $205,000. b. Raw materials used in production (all direct materials), $190,000. c. Utility bills incurred on account, $60,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs. Direct labor (1,815 hours) Indirect labor Selling and administrative salaries $ 235,000 $ 91,000 $115,000 e. Maintenance costs incurred on account in the factory, $55,000 f. Advertising costs incurred on account, $137,000. g. Depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $110,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs. $? J. Cost of goods manufactured for the year, $780,000 k. Sales for the year (all on account) totaled $1,250,000. These goods cost $810,000 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 Required: $ 31,000 $ 22,000 $ 61,000 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to T-accounts. (Don't forget to enter the beginning Inventory balances above.) 3. Prepare a schedule of cost of goods manufactured. 4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold, 4B. Prepare a schedule of cost of goods sold. 5. Prepare an Income statement for the year. Complete this question by entering your answers in the tabs below. Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll 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 $329,000 of manufacturing overhead for an estimated allocation base of 940 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $205,000. b. Raw materials used in production (all direct materials), $190,000. c. Utility bills incurred on account, $60,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs. Direct labor (1,815 hours) Indirect labor Selling and administrative salaries $ 235,000 $ 91,000 $115,000 e. Maintenance costs incurred on account in the factory, $55,000 f. Advertising costs incurred on account, $137,000. g. Depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $110,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs. $? J. Cost of goods manufactured for the year, $780,000 k. Sales for the year (all on account) totaled $1,250,000. These goods cost $810,000 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 Required: $ 31,000 $ 22,000 $ 61,000 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to T-accounts. (Don't forget to enter the beginning Inventory balances above.) 3. Prepare a schedule of cost of goods manufactured. 4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold, 4B. Prepare a schedule of cost of goods sold. 5. Prepare an Income statement for the year. Complete this question by entering your answers in the tabs below.
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
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...
-
In his book, The Federal Land Revisited, Marion Clawson proposed what he called the pullback concept: Under the pullback concept any person or group could apply, under applicable law, for a tract of...
-
Is evidence that competitors shared price information proof that they engaged in a price-fixing conspiracy illegal under Article 1 of the Sherman Act?
-
Preliminary Analytical Procedures Audited Figures Trial Balance As of 12/31/2022 As of 12/31/2023 $ Difference % Change Cash and cash equivalents Accounts receivable Allowance for doubtful accounts...
-
New findings suggest many persons possess symptoms of motion sickness after watching a 3D movie. One scientist administered a questionnaire to \(n=451\) adults after they watched a 3D movie of their...
-
The following balance sheet is submitted to you for inspection and review. Appalachian Freight Company Balance Sheet December 31, 2011 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
A company has established that the relationship between the sales price for one of its product and the quantity sold per month is approximately p = 75 - 0.1D units (D is the demand or quantity sold...
-
2. Strong-Weak Entity Relation What is the difference in the mapping of a strong-weak entity relation and a 1:N relation in regard to the 1. PKs of the resulting relations ? 2. FK of the resulting...
-
Someone borrowed 20,000 TL to buy a car now and s/he will repay it with monthly constant payments at an annual nominal rate of 6% over the next 5 years. The payments will start at the end of first...
-
what if the company sold 1100 and tires to the Nixon Car Comany for $60 each. Hawell uses the net method for accounting for cash discounts.
-
Sara was performing the SN2 reaction by adding NaBr to a solution of 1-butanol and heating it to reflux. When she isolated the product at the end of the reaction, she observed the following in her IR...
-
Reggie's Travel Bags has a unit selling price of $65, unit variable cost of $35, and fixed costs of $25,000 per month. Last month the company sold 1,000 travel bags. If fixed costs increase by $5,000...
-
Travel Fridge, Inc. borrows $45,000 from the bank for one year at an annual rate of 8% compounded quarterly. What is the effective rate of the loan?
-
1. Technically, statistic refers to which? a) A sample characteristic b) A measure of variability c) A population characteristic d) A particular scale of data 2. The z transformation makes data...
-
31. What is the income that can be received over 15 years from $500,000 earning 6% annually? 32. What is the semiannual payment required to retire $50,000 in debt over 5 years at 8% compounded...
-
Which form of financing allows the source of the funds to share in the wealth if the company which received the financing does well? a. A loan b. An investment c. Both a loan and an investment d....
-
Which form of financing requires repayment, regardless of whether the company receiving the funds does well or not? a. A loan b. An investment c. Both a loan and an investment d. Neither a loan nor...
-
What are vertical and horizontal financial statement analyses? What are their advantages?
Study smarter with the SolutionInn App