Answered step by step
Verified Expert Solution
Question
1 Approved Answer
all questions need help Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil
all questions need help
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 thot 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 remainder related to selling and administrative activities) d, Accrued salary and wage costs Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 490.000 $ 110,000 e. Maintenance costs incurred on account in the foctory, $54,000, Advertising costs incurred on account, $136,000. 9. Depreciation was recorded for the year, 995,000 (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) Manufacturing overhead cost was applied to jobs, $ ? J. Cost of goods manufactured for the year, $770,000 k. Sales for the year all on account totaled $1,200,000. These goods cost $800,000 according to their job cost sheets. Req 1 Req 2 Req3 Req 4A Req 4B Req Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses: 0 $ 0 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started