Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil fields. The company uses s job-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1300 direct labor-hours. The following transactions occurred during the year a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bills incurred on account. $66,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,175 hours) Indirect labor Selling and administrative salaries $205,000 $ 97,000 $145,000 e. Maintenance costs incurred on account in the factory, $61.000 Advertising costs incurred on account, $143.000 9. Depreciation recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $116.000 (85% related to factory facates, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost applied to jobs, S Cost of goods manufactured, $840,000 k. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets The beginning balances in the inventory accounts were Raw Materials Work in Process Finished Goods Required: $ 37,000 $ 28,000 $ 67,000 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 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement. Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil fields. The company uses s job-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1300 direct labor-hours. The following transactions occurred during the year a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bills incurred on account. $66,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,175 hours) Indirect labor Selling and administrative salaries $205,000 $ 97,000 $145,000 e. Maintenance costs incurred on account in the factory, $61.000 Advertising costs incurred on account, $143.000 9. Depreciation recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $116.000 (85% related to factory facates, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost applied to jobs, S Cost of goods manufactured, $840,000 k. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets The beginning balances in the inventory accounts were Raw Materials Work in Process Finished Goods Required: $ 37,000 $ 28,000 $ 67,000 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 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement.
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
A-Compute the pressure drop due to fitting through rectangular duct elbow (90) shown in the figure below its dimensions (175 x 350 mm) the elbow radius R = 350 mm. the air volume flow rate 0.5 m/s,,...
-
Silverstone Ltd. Budgets to make 25,000 standard units of output during a budget period of 125,000 hours. Actual output during the period amounted to 30,000 units, which took 145,000 hours to...
-
Bill Gates total excess performance was 3% . His pure selection score was 0% and his interaction effect was 6% . It appears Mr. gates is a pretty good apartment investor and understands his...
-
Economic crises tend to occur sporadically virtually every decade and in various countries ranging from Sweden to Argentina, from Russia to Korea, and from Japan to the United States. Each crisis is...
-
The precision of equipment and instruments is measured by the variability of their operation under repeated conditions. The output from an automatic lathe producing the diameter (in millimeters) of a...
-
A shareholder owns 4 5 % of a S corporation stock for 1 7 5 days and 4 0 % of the S corporation s stock for the remaining days of the tax year ( 3 6 5 day year - not a leap year ) . If the ordinary...
-
With any model (McCabe-Thiele, Kremser, triangular diagram, computer simulation, mass transfer analysis), you should ask how well the model captures key aspects of the physical situation. For staged...
-
1. Jeff wonders if L'Experience Flicit Restaurant is more appealing to women that it is to men or vice versa. Perform the proper analysis, interpret it, and answer Jeff's question. 2. With respect to...
-
review the 6 steps that you can take to increase your personal curiosity. Think of a recent innovation event at Clark University and describe how Clark University worked through these 6 steps....
-
Shaw Wallace makes two wines: a regular wine and a premium wine. Shaw Wallace distributes theregularwineandthepremiumwinethroughdifferentdistributionchannels.Itdistributes 24,000 cases of regular...
-
Q1) (25 points) Cold water moves at a rate of m=0.2 kg/s through a 5 mm diameter horizontal tube submerged in a large hot water bath maintained at 80C. Convection heat transfer coefficient outside of...
-
The following data were collected as part of a quality control study for the analysis of sodium in serum; results are concentrations of Na+ in mmol/L. 140 143 141 137 132 157 143 149 118 145...
-
For each of the four stages of the product life cycle, describe the marketing strategy that you would use if your product were in that stage, and name at least one example of a product that you feel...
-
1. Consider a firm which produces according to the following production function by using labor and capital: f (k,l) = min (5k, 101)
-
Lesotho'footwear industry manufacturer one in maseru and other in maputsoe.aputsoe.in maseru te marginal benefit associated wih ppolluiio cleeanup is MB = 3 0 0 - 1 0 Q while in maputsoe te marginal...
-
As of January 1, Swifty Corporation had 63,100 shares of common stock with no par value issued and outstanding. The stock has a declared value of $4 per share. The following transactions took place...
-
Suppose that A is an m n matrix with linearly independent columns and the linear system LS(A, b) is consistent. Show that this system has a unique solution.
-
Many retailers have installed point-of-sale (POS) systems to better manage their inventory and to save time and cut costs associated with ringing up customer sales. How should employees be trained to...
-
Airlines have long used database technology to monitor capacity and maximize revenue by charging different prices to almost every passenger on a given flight. To what extent can other industries...
-
Why not use copies of the sales order as the picking ticket, packing list, and sales invoice?
Study smarter with the SolutionInn App