Question

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 $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $295,000. c. Utility bills incurred on account, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct labor (890 hours) Indirect labor Selling and administrative salaries $ 325,000 $ 109,000 $ 205,000 e. Maintenance costs incurred on account in the factory, $73,000 f. Advertising costs incurred on account, $155,000. g. Depreciation was recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $105,000 (85% 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. $960,000. Sales for the vear tall on account totaler 2 150 000 Theco nondernet con 0 according to their

Answer 1

Froya Fabrikker xlsx - Excel (Product Activation Failed) ? - ox Sign in FORMULAS DATA REVIEW VIEW La Copy 2 AutoSumA , AA == = = 5. FILE HOME INSERT PAGE LAYOUT X Cut Calibri - 11 Paste Format painter BIU Cipboard Font M47 : x fit D [ I G H EX D Normal Conditional Format as Neutral Formatting Table Bad Calculation Good Check Cell A Wrap Test + Merge & Center - Alignment General $ % ) Number = Insert Delete Format Sort Find B Filter - Select- Editing Styles Cells L I J K M N O P Q R S T U V W X Y Z Credit Accounting titles & Explanations Raw materials inventory Accounts payable Debit 295,000 295,000 280,000 work in process inventory Raw materials inventory 280,000 manufacturing overhead utility expense Accounts payable 74100 3900 78,000 work in process inventory Manufacturing overhead Salary expense Salary & wages payable 325,000 109,000 205,000 639,000 73,000 Manufacturing overhead Accounts payable 73,000 155,000 Advertising expense Accounts payable 155,000 Manufacturing overhead Depreciation expense Accumulated depreciation 72800 18200 91,000 Manufacturing overhead Rent expense Accounts payable 89250 15750 105,000 Sheet1 4 HLADY E -- + 1127 AM # Type here to search o wie @ce ENG 0 ** 9/17/2019

? - ox Sign in La Copy 2 AutoSumA , Bad Calculation H 5. Froya Fabrikker xlsx - Excel (Product Activation Failed) FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Xcut Calibri - 11 AA == > Wrap Text General D Normal Paste Format Painter B I U A' = = = * Merge & Center - $ % Conditional Format as Neutral Formatting Table Cipboard Font Alignment Number M47 : X fire D [I GLIJ K L M N O P Q Good Check Cell EX Insert Delete Format Sort Find B Filter - Select- Editing Styles Cells R S T U V W X Y Z 89250 Manufacturing overhead Rent expense Accounts payable 15750 105,000 427,200 Work in process inventory Manufacturing overhead 427,200 960,000 finished goods inventory Work in process inventory 960,000 2,150,000 Accounts receivable Sales 2,150,000 990,000 cost of goods sold finished goods inventory 990,000 Accounts receivable Berbal 2,150,000 Sales Beg.bal 2,150,000 k. end bal 2,150,000 2,150,000 end bal Raw Materials Beg Bal4 9,000 795,000 cost of goods sold Beg.Bal 990,000 280,000 h. End bal 64,000 End bal 990,000 Sheet10 HLADY E + -- 1127 AM Type here to search - o wie QC e x A A A ENG 9/17/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) ? REVIEW VIEW - ox Sign in Α Α Ε Χ ΕΙ Σ Autnum Α La Copy General $ % ) Number Wrap Test * Merge & Center - Alignment D Normal Conditional Format as Neutral Formatting Table Bad Calculation Good Check Cell Insert Delete Format Sort Find B Filter - Select- Editing Styles Cells 5. FILE HOME INSERT PAGE LAYOUT FORMULAS DATA X Cut Calibri - 11 AA == Paste Padre Format Painter BIU A = = = Cipboard Fom M47 : X fit D r G L Work in process Beg Bal 40,000 280,000 960,000 325,000 427200 J O P Q R S T U V W X Y Z K L M N Manufacturing overhead Beg. Bal 74100 127,200 109,000 73,000 72900 89250 9,050 End bal Advertising expense Beg.bal 155,000 end bal 112,200 finished goods Beg bal 79,000 960,000 990,000 k End bal 19,000 end bal 155,000 Accumulated Depreciation beg. bal 91,000 Utilities expense Beg bal 3900 End bal 91,000 end bal 3.900 Accounts payable Beg.bal Salaries expense Beg. Bal 205,000 295,000 a. 78,000 C. 73,000 e. 155,000 t. 105,000 h. 690,000 end bel end bal 205,000 Sheet1 ) HLADY E -- + + O Type here to search o wie QC e x ENG 9/17/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) ? - ox Sign in FORMULAS DATA REVIEW VIEW La Copy 2 AutoSumA , AA == = = 5. FILE HOME INSERT PAGE LAYOUT X Cut Calibri - 11 Paste Format painter BIU Cipboard Font M47 : fir 2D [ I G Wrap Test Merge & Center - H EX D Normal Conditional Format as Neutral Formatting Table Bad Calculation Good Check Cell A General $ % ) Number = + Insert Delete Format Sort Find B Filter - Select- Editing Alignment Styles Cells L I J K L M N O P Q R S T U V W X Y Z Salaries & wages payable Berbal Depreciation expense Bec.bal 18200 End bal 18,200 539,000 d. 639,000 end bal rent expense beg bal 15750 15,750 End bal overhead applied - 388,800/810*890 127200 Schedule of Cost of Goods Manufactured Direct Materials: Beginning raw materials inventory Add purchase of raw materials Total raw materials available less:Ending raw materials inventory Materials used in production Direct Labor Manufacturing overhead applied to work in process total manufacturing costs Add:Beginning work in process inventory 49,000 295,000 344,000 64,000 280,000 325,000 127200 1,032,200 40,000 1,072,200 112,200 960,000 113 114 less:Ending work in process inventory Cost of goods manufactured 115 Sheet1 READY E + -- 1127 AM : - Type here to search o wie QC e x A A A ENG 9/17/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) ? - ox Sign in REVIEW VIEW FORMULAS DATA AA == A = = = > La Copy 2 AutoSumA , 5. FILE HOME INSERT PAGE LAYOUT Xcut Calibri - 11 Paste Format painter BIU Cipboard Fom M47 : X v fit D [ I G Wrap Text Merge & Center - H EX D Normal Conditional Format as Neutral Formatting Table Bad Calculation Good Check Cell General $ % ) Number + Insert Delete Format Sort Find B Filter - Select- Editing Alignment Styles Cells L I J K M N O P Q R S T U V W X Y Z No TR 1 1 General lournal manufacturing overhead cost of goods sold Debit Credit 9050 9,050 Schedule of Cost of goods sold Beginning finished Foods inventory Add:Cost of goods manufactured Cost of gnads available for sale less:ending finished goods inventory Unadjusted cost of goods sold less.overapplied overhead Adjusted cost of goods sold 79.000 960,000 1,039,000 49,000 990,000 9,050 980,950 2,150,000 980,950 1,169,050 Income statement Sales cost of goods sold Gross margin Selling and administrative expense Utilities expense Advertising expense Salaries expense Depreciation expense rent expense 3900 155,000 205,000 18,200 15750 111 397,850 771,200 Net operating income 142 143 Sheet1 © HLADY : Type here to search o wie QC e x A 1127 AM ENG 9/1/2019 1