{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T23:11:26-04:00", "answer_date": "2024-05-26 23:11:26", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1765462", "url": "\/study-help\/questions\/froya-fabrikker-as-of-bergen-norway-is-a-small-company-1765462", "question_creation_date_js": "2024-05-26T23:11:26-04:00", "question_creation_date": "May 26, 2024 11:11 PM", "meta_title": "[Solved] Froya Fabrikker A\/S of Bergen, Norway, is | SolutionInn", "meta_description": "Answer of - Froya Fabrikker A\/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North | SolutionInn", "meta_keywords": "froya,fabrikker,\/s,bergen,norway,small,company,manufactures,specialty,heavy,equipment,north", "question_title_h1": " 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", "question_title": " Froya Fabrikker A\/S of Bergen, Norway, is a small company that", "question_title_for_js_snippet": "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 $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor hours The following transactions took place during the year a Raw materials purchased on account, $220,000 b Raw materials used in production (all direct materials), $205,000 c Utility bills incurred on account, $63,000 (90 related to factory operations, and the remainder related to selling and administrative activities) d Accrued salary and wage costs Direct labor (1,075 hours) Indirect labor Selling and administrative salaries $ 250,000 $ 94,000 $ 130,000 e Maintenance costs incurred on account in the factory, $58,000 f Advertising costs incurred on account, $140,000 g Depreciation was recorded for the year, $88,000 (85 related to factory equipment, and the remainder related to selling and administrative equipment) h Rental cost incurred on account, $113,000 (90 related to factory facilities, and the remainder related to selling and administrative facilities) i Manufacturing overhead cost was applied to jobs, $ j Cost of goods manufactured for the year, $810,000 k Sales for the year (all on account) totaled $1,400,000 These goods cost $840,000 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 $ 34,000 $ 25,000 $ 64,000 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 Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Prepare journal entries to record the preceding transactions (If no entry is required for a transaction event, select No journal entry required in the first account field )", "question_description": "\"image", "transcribed_text": "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 $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $220,000. b. Raw materials used in production (all direct materials), $205,000. c. Utility bills incurred on account, $63,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,075 hours) Indirect labor Selling and administrative salaries $ 250,000 $ 94,000 $ 130,000 e. Maintenance costs incurred on account in the factory, $58,000 f. Advertising costs incurred on account, $140,000. g. Depreciation was recorded for the year, $88,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $113,000 (90% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $ ? . j. Cost of goods manufactured for the year, $810,000. k. Sales for the year (all on account) totaled $1,400,000. These goods cost $840,000 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: $ 34,000 $ 25,000 $ 64,000 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. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction\/event, select \"No journal entry required\" in the first account field.)", "related_book": { "title": "Managerial Accounting Tools for business decision making", "isbn": "978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895", "edition": "6th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/100.jpg", "uri": "\/textbooks\/managerial-accounting-tools-for-business-decision-making-6th-edition-100", "see_more_uri": "" }, "free_related_book": { "isbn": "1604594640", "uri": "\/textbooks\/psychology-of-revolution-1st-edition-978-1604594645-137494", "name": "Psychology Of Revolution", "edition": "1st Edition" }, "question_posted": "2024-05-26 23:11:26", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/question-3-solve-the-initialvalue-problem-y-sin-t-248957", "description": "Solve the initial-value problem = * sin f, y(-2) = dt", "stars": 3 }, { "url": "\/a-refrigerator-used-by-a-meat-processor-has-a-cost-195056", "description": "A refrigerator used by a meat processor has a cost of $60,000, an estimated residual value of $12,600, and an estimated useful life of 12 years. 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