Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil fields. The company uses s job-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1300 direct labor-hours. The following transactions occurred during the year a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bills incurred on account. $66,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,175 hours) Indirect labor Selling and administrative salaries $205,000 $ 97,000 $145,000 e. Maintenance costs incurred on account in the factory, $61.000 Advertising costs incurred on account, $143.000 9. Depreciation recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $116.000 (85% related to factory facates, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost applied to jobs, S Cost of goods manufactured, $840,000 k. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets The beginning balances in the inventory accounts were Raw Materials Work in Process Finished Goods Required: $ 37,000 $ 28,000 $ 67,000 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 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement. Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil fields. The company uses s job-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1300 direct labor-hours. The following transactions occurred during the year a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bills incurred on account. $66,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,175 hours) Indirect labor Selling and administrative salaries $205,000 $ 97,000 $145,000 e. Maintenance costs incurred on account in the factory, $61.000 Advertising costs incurred on account, $143.000 9. Depreciation recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $116.000 (85% related to factory facates, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost applied to jobs, S Cost of goods manufactured, $840,000 k. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets The beginning balances in the inventory accounts were Raw Materials Work in Process Finished Goods Required: $ 37,000 $ 28,000 $ 67,000 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 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement.
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
-
Bill Gates total excess performance was 3% . His pure selection score was 0% and his interaction effect was 6% . It appears Mr. gates is a pretty good apartment investor and understands his...
-
Economic crises tend to occur sporadically virtually every decade and in various countries ranging from Sweden to Argentina, from Russia to Korea, and from Japan to the United States. Each crisis is...
-
A company is investigating two potential vendors on the timeliness of their deliveries. A random sample of size 10 from the first vendor produced an average delay time of 4.5 days with a standard...
-
Under what circumstances does the Interstate Income Law prohibit a state from taxing income derived within the state by an out-of-state business?
-
The sources of energy of the sun is: (a) Nuclear fission (b) Chemical reaction (c) Nuclear fusion (d) Photoelectric effect
-
Based on the tons handled in a year, the ports listed below are the 25 busiest ports in the United States (The 2013 World Almanac). a. What is the largest number of tons handled? What is the smallest...
-
Your company has identified $2750 per week of potential savings on your processing line. Your company wishes to deposit these savings into an account that earns 1.15% interest compounded weekly....
-
What is the goal of employee development? How does employee development affect organizational development? Do you think an organization should develop its own employee training program or should it...
-
Prompts 1. What was your best experience with a professional salesperson? 2. What was your worst experience with a professional salesperson? 3. What are your thoughts on the "4-Letter Code to Selling...
-
Discuss the meaning and implications of R-squared and the P-value. What is the meaning of each; how well do they work in determining how well our model predicts the outcome variable? Is the use of...
-
ruta Inc. provided the following data: June July August September Net Sales 1,274,000 676,000 1,020,000 780,000 Purchases of merchandise (includes freight-in) 760,000 65,0000 700,000 560,000...
-
Delve into the intricacies of virtualization techniques used in modern operating systems, highlighting the distinctions between full virtualization, paravirtualization, and containerization, and...
-
In 2022, the failure to meet due diligence requirements by a paid tax preparer in determining the taxpayer's eligibility for the Earned Income Credit (EITC), the Child Tax Credit (CTC)/Additional...
-
Write a paper on Integration of Management and Information Technology in the Government of India
-
(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...
-
Figure 7.20 shows a hydraulic system of two interconnected tanks that have the same cross-sectional area of \(A\). A pump is connected to tank 1. Assume that the relationship between the voltage...
-
Plot the specified output by using the RK4 method. \(3 \ddot{x}+\dot{x}+x^{3}=\frac{4}{3}, x(0)=\frac{1}{3}, \dot{x}(0)=0,0 \leq t \leq 20\), output: \(\dot{x}\)
-
A linear system is modeled as \[\frac{2}{5} \dot{x}+3 x=\frac{5}{3} u(t)+u_{r}(t), \quad x(0)=0\] where \(u(t)\) and \(u_{r}(t)\) denote the unit-step and unit-ramp functions, respectively. a....
Study smarter with the SolutionInn App