{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-24T13:04:16-04:00", "answer_date": "2024-05-24 13:04:16", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1630108", "url": "\/study-help\/questions\/problem-315-algo-journal-entries-taccounts-financial-statements-lo31-lo32-1630108", "question_creation_date_js": "2024-05-24T13:04:16-04:00", "question_creation_date": "May 24, 2024 01:04 PM", "meta_title": "[Solved] Problem 3-15 (Algo) Journal Entries; T-Ac | SolutionInn", "meta_description": "Answer of - Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froya Fabrikker A\/S | SolutionInn", "meta_keywords": "problem,3-15,algo,journal,entries,-accounts,financial,statements,lo3-1,lo3-2,lo3-3,lo3-4", "question_title_h1": " Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froya Fabrikker A\/S of Bergen, Norway, is a small company that manufactures", "question_title": " Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3,", "question_title_for_js_snippet": "Problem 3 15 (Algo) Journal Entries T Accounts Financial Statements LO3 1, LO3 2, LO3 3, LO3 4 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 1 Advertising costs incurred on account, $142,000 g 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 facilities) 1 Manufacturing overhead cost was applied to jobs, $ J Cost of goods manufactured for the year, $830,000 k Sales for the year (all on account) totaled $1,500,000 These goods cost $860,000 according to their job cost sheets 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 f Advertising costs incurred on account, $142,000 g 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 facilities) 1 Manufacturing overhead cost was applied to jobs, $ J Cost of goods manufactured for the year, $830,000 k Sales for the year (all on account) totaled $1,500,000 These goods cost $860,000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were Raw Materials Work in Process Finished Goods Required $ 36,000 $27,000 $ 66,000 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 for the year Complete this question by entering your answers in the tabs below ", "question_description": "\"image\"image", "transcribed_text": "Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] 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 1. Advertising costs incurred on account, $142,000. g. 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 facilities). 1. Manufacturing overhead cost was applied to jobs, $? J. Cost of goods manufactured for the year, $830,000. k. Sales for the year (all on account) totaled $1,500,000. These goods cost $860,000 according to their job cost sheets. 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 f. Advertising costs incurred on account, $142,000. g. 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 facilities). 1. Manufacturing overhead cost was applied to jobs, $? J. Cost of goods manufactured for the year, $830,000. k. Sales for the year (all on account) totaled $1,500,000. These goods cost $860,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods Required: $ 36,000 $27,000 $ 66,000 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 for the year. Complete this question by entering your answers in the tabs below.", "related_book": { "title": "Accounting Information System", "isbn": "978-1439078570, 1439078572", "edition": "7th Edition", "authors": "James A. Hall", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/210.jpg", "uri": "\/textbooks\/accounting-information-system-7th-edition-9781439078570", "see_more_uri": "" }, "free_related_book": { "isbn": "1498728855", "uri": "\/textbooks\/statistics-for-engineering-and-the-sciences-6th-edition-9781498728850", "name": "Statistics For Engineering And The Sciences", "edition": "6th Edition" }, "question_posted": "2024-05-24 13:04:16", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-charged-isolated-metal-sphere-of-diameter-10-cm-has", "description": "A charged isolated metal sphere of diameter 10 cm has a potential of 8000 V relative to V = 0 at infinity. 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