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 $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $230,000. b. Raw materials used in production (all direct materials). $215,000 c. Utility bills incurred on account, $65,000 (85% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,135 hours) Indirect labor Selling and administrative salaries $260.000 $ 96,000 $ 140,000 e. Maintenance costs incurred on account in the factory $60,000 t Advertising costs incurred on account $142.000 9 Depreciation was recorded for the year. $90.000 (75 related to factory equipment, and the remainder related to selling and administrative equipment). h Rental cost incurred on account, $115.000 (80% related to factory facilities, and the remainder related to selling and administrative Accounts Receivable Beg Bali Beg Bal End Bal End. Bal Cost of Goods Sold Beg Bal Beg Bal End. Bal End. Bal Work in PrOcES Manucurig Overhead Beg Bal Beg Bal Prey 1 of 2 Next > Cype here to search Y H G JK N CCVB | Na 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 $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $230,000. b. Raw materials used in production (all direct materials). $215,000 c. Utility bills incurred on account, $65,000 (85% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,135 hours) Indirect labor Selling and administrative salaries $260.000 $ 96,000 $ 140,000 e. Maintenance costs incurred on account in the factory $60,000 t Advertising costs incurred on account $142.000 9 Depreciation was recorded for the year. $90.000 (75 related to factory equipment, and the remainder related to selling and administrative equipment). h Rental cost incurred on account, $115.000 (80% related to factory facilities, and the remainder related to selling and administrative Accounts Receivable Beg Bali Beg Bal End Bal End. Bal Cost of Goods Sold Beg Bal Beg Bal End. Bal End. Bal Work in PrOcES Manucurig Overhead Beg Bal Beg Bal Prey 1 of 2 Next > Cype here to search Y H G JK N CCVB | Na
