Question

requirment #2

Check my work Problem 3-15 Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, LO3-3, LO3-4) Froya Fabrikker AS of Bergen, Norway, is a small company that manufactures speciality 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 $329,000 of manufacturing overhead for an estimated allocation base of 940 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $205,000 b. Raw materials used in production (all direct materials). $190,000 c. Utility bills incurred on account, $60,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d Accrued salary and wage costs Direct labor(1,015 hours) Indirect labor Selling and administrative salaries $ 235,000 $ 91.000 $115.000

Answer 1

Accounts receivable					Sales
Beg.bal					Beg.bal
k.	1,250,000						1,250,000	k.
end bal	1,250,000						1,250,000	end bal
Raw Materials					cost of goods sold
Beg.Bal	31,000				Beg.Bal
a.	205,000	190,000	b.		k.	810,000
End bal	46,000				End bal	810,000
Work in process					Manufacturing overhead
Beg Bal	22,000				Beg.Bal
b.	190,000	780,000	j		c.	54000	355,250	i
d.	235,000				d.	91,000
i.	355250				e.	55,000
					g.	59500
end bal	22,250				h.	82500
							13,250	End bal
finished goods					Advertising expense
Beg bal	61,000				Beg.bal
j	780,000	810,000	k		f.	137,000
End bal	31,000				end bal	137,000
Accumulated Depreciation					Utilities expense
beg.bal					Beg bal
g.		85,000	g.		c.	6000
End bal		85,000			end bal	6,000
Accounts payable					Salaries expense
Beg.bal					Beg.Bal
		205,000	a.		d.	115,000
		60,000	c.
		55,000	e.
		137,000	f.
		110,000	h.
end bal		690,000			end bal	115,000
Depreciation expense					Salaries & wages payable
Beg.bal					Beg.bal
g.	25500						441,000	d.
End bal	25,500				end bal		441,000
rent expense
beg bal
h.	27500
End bal	27,500
overhead applied =		329000/940*1015=			355250