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Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The compary uses
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The compary uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct laborhours. its predetermined overhead rate was based on a cost formula that estimated $372.000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $240,000. b. Raw materials used in production (all direct materials), $225,000. c. Utility bills incurred on account, $67,000 (95\% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: e. Maintenance costs incurred on account in the factory, $62,000 f. Advertising costs incurred on account, $144,000. 9. Depreciation was recorded for the year, $80,000(85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost indurred on account, $105,000 (90\% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $850,000. k. Sales for the year (all on account) totaled $1,600,000. These goods cost $880,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: The balances in the inventory accounts at the beginning of the year were: 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.) 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. AB. 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. Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Depreciation Expense } \\ \hline Debit & & \\ \hline & & \\ \hline & & \\ \hline Beginning Balance & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Salaries \& Wages Payable } \\ \hline Debit & & \\ \hline & & \\ \hline & & \\ \hline Beginning Balance & & \\ \hline & & \\ \hline Ending Balance & & \\ \hline & & \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured. Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. Prepare a schedule of cost of goods sold. Prebare an income statement for the year
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