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please help with this problem, im so sorry its so long Problem 2-26A Journal Entries, T-Accounts; Financial Statements [LO2-1, LO2-2, LO2-3, LO2-4, LO2-5, LO2-6, LO2-7]
please help with this problem, im so sorry its so long
Problem 2-26A Journal Entries, T-Accounts; Financial Statements [LO2-1, LO2-2, LO2-3, LO2-4, LO2-5, LO2-6, LO2-7] Froya Fabrikker AS 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 $336,000 of manufacturing overhead for an estimated allocation base of 1,050 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, $225,000. b. Raw materials requisitioned for use in production (all direct materials), $210,000. c. Utility bills were incurred, $58,000 (95% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage costs were incurred: $255,000 Direct labor (1,125 hours) Indirect labor 95,000 Selling and administrative salaries 135,000 e. Maintenance costs were incurred in the factory, $59,000. f. Advertising costs were incurred, $141,000 g. Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on buildings, $114,000 (75% related to factory operations, 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, $820,000. k. Sales for the year (all on account) totaled $1,450,000. These goods cost $850,000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year wereStep by Step Solution
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