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can someone answer this question? PROBLEM 3-15 Journal Entries; T-Accounts; ; Financial Statements LO3-1, LO3-2, LO3-3, LO3-4 Froya Fabrikker A/S of Bergen, Norway, is a
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PROBLEM 3-15 Journal Entries; T-Accounts; ; Financial Statements LO3-1, LO3-2, LO3-3, LO3-4 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 remainder related to selling and administrative activities). d. Accrued salary and wage costs: $230,000 Direct labor (975 hours) Indirect labor... Selling and administrative salaries $90,000 $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 Manufacturing overhead cost was applied to jobs, $_ ? . page 138 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 The balances in the inventory accounts at the beginning of the year were: Raw Materials. $30,000 Work in Process . Finished Goods ... $21,000 $60,000 - Required: 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.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. 3. Prepare a schedule of cost of goods manufactured. 4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the yearStep by Step Solution
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