TB TF Qu. 1-49 (Static) The amount that a... The amount that a manufacturing company could earn by renting unused portions of its warehouse is an example of an opportunity cost. True or False True False
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 ofl fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct laborhours. Its predetermined overhead rate was based on a cost formula that estimated $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $260,000 b. Raw materials used in production (all direct materials), $245,000 c. Utility bills incurred on account, $71,000 (80\% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. 9. Depreciation was recorded for the year, $84,000 (75\% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $109,000(80% related to factory facilities, and the remainder related to selling and administrative fachities). 1. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $890,000 k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Required: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to T-accounts. (Don' forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods manufactured 4A. Prepare a journal entry to close anv balance in the Manufacturing Overhead account to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured. 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 ofl fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct laborhours. Its predetermined overhead rate was based on a cost formula that estimated $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $260,000 b. Raw materials used in production (all direct materials), $245,000 c. Utility bills incurred on account, $71,000 (80\% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. 9. Depreciation was recorded for the year, $84,000 (75\% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $109,000(80% related to factory facilities, and the remainder related to selling and administrative fachities). 1. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $890,000 k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Required: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to T-accounts. (Don' forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods manufactured 4A. Prepare a journal entry to close anv balance in the Manufacturing Overhead account to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured
