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Q4. PLEASE DO ALL THE REQUIRED PARTS. THANK YOU! Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for
Q4. PLEASE DO ALL THE REQUIRED PARTS. THANK YOU!
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 $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: Direct labor (1,275 hours) Indirect labor Selling and administrative salaries 270,000 $ 98,000 150,000 e. Maintenance costs incurred on account in the factory, $62,000 f. Advertising costs incurred on account, $144,000. g. 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 incurred on account, $105,000 (90% related to factory facilities, 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, $850,000 k. Sales for the year (all on account) totaled $1,600,000. These goods cost $880,000 according to their job cost sheetsStep by Step Solution
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