PROBLEM 2-26A Journal Entries; TAccounts; Financial Statements [LO2-1, LO2-2, Lo2-3, Lo2-, LO2-5, LO2-6, LO2-7 Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account): North Sea oil fields. The company uses a job-order costing system and applies manufacturing Raw materials were purchased for use in production, $200,000. Raw materials were requisitioned for use in production (all direct materials), $185,000. Utility bills were incurred, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). Salary and wage costs were incurred: a. b. c. d. Direct labor (975 hours) Indirect labor Selling and administrative salaries . .. $230,000 $90,000 $110,000 Maintenance costs were incurred in the factory, $54,000. Advertising costs were incurred, $136,000 Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) Rental cost incurred on buildings, $120,000 (85% related to factory operations, and the remainder related to selling and administrative facilities). Manufacturing overhead cost was applied to jobs, $? Cost of goods manufactured for the year, $770,000 Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cost sheets e. f. g. h. i. j. k. The balances in the inventory accounts at the beginning of the year were as follows: Raw Materials Work in Process Finished Goods $30,000 $21,000 $60,000 Required: 3. 4. Prepare a schedule of cost of goods manufactured. Prepare a schedule of cost of goods sold. Prepare an income statement for the year. Job 412 was one of the many jobs started and completed during the year. The job required $8,000 in direct materials and 39 hours of direct labor time at a total direct labor cost of $9,200. The job contained only four units. If the company bills at a price 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? 5. 6