REQUIRED

5.Prepare an income statement for the year (traditional format).

6.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. If the job contained four units and the company billed at 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

Problem 2-26A Horizontal Analysis; Financial Statements [L02-1, LO2-2, LO2-3, LO2-4, 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 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 $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 for cash): a. Raw materials purchased for use in production, $200,000. b. Raw materials requisitioned for use in production (all direct materials), $185,000. c. Utility bills were incurred, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage costs were incurred: Direct labor (975 hours) $230,000 Indirect labor $ 90,000 Selling and administrative salaries $110,000 e. Maintenance costs were incurred in the factory, $54,000. f. Advertising costs were incurred, $136,000. g. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on buildings, $120,000 (85% 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, $770,000. k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 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 $30,000 $21,000 $60,000