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Froya Fabrikker A/S............: ** I want the answer of Quastion 2, 3 4, 5 and 6 I'm only done from quastion 1 Froya Fabrikker A/S
Froya Fabrikker A/S............: ** I want the answer of Quastion 2, 3 4, 5 and 6 I'm only done from quastion 1
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 and 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 $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account) a. Raw materials purchased for use in production, $250,000 b. Raw materials requisitioned for use in production (all direct materials), $235,000 c. Utility bills were incurred, $69,000 (90% related to factory operations, and the remainder related to selling and administrative activities) Salary and wage costs were incurred d. Direct labor (1,075 hours) Indirect labor $ 280,000 $ 100,000 160,000 Selling and administrative salaries e. Maintenance costs were incurred in the factory, S64,000 f. Advertising costs were incurred, $146,000 g. Depreciation was recorded for the year, $82,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) Rental cost incurred on buildings, $107,000 (80% related to factory operations, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, $? Cost of goods manufactured for the year, $870,000 Sales for the year (all on account) totaled $1,700,000. These goods cost $900,000 according to their job cost sheets h. i. j. k. The balances in the inventory accounts at the beginning of the year were Raw materials Work in process Finished Goods $ 40,000 $ 31,000 $ 70,000Step by Step Solution
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