Compute Predetermined overhead rate = $350,000/1000 direct labor hours = $350
1.
Prepare journal entries as follows:
Trn. No | Account Titles | Debit | Credit |
a | Raw material inventory | $250,000 | |
Accounts payable | $250,000 | ||
b | Work in process inventory | $235,000 | |
Raw material inventory | $235,000 | ||
c | Manufacturing overhead | $62,100 | |
Utility expenses | $6,900 | ||
Accounts payable | $69,000 | ||
d | Work in process inventory | $280,000 | |
Manufacturing overhead | $100,000 | ||
Salaries expenses | $160,000 | ||
Wages payable | $540,000 | ||
e | Manufacturing overhead | $64,000 | |
Accounts payable | $64,000 | ||
f | Advertisement expenses | $146,000 | |
Accounts payable | $146,000 | ||
g | Manufacturing overhead | $61,500 | |
Depreciation expenses | $20,500 | ||
Accumulated depreciation | $82,000 | ||
h | Manufacturing overhead | $85,600 | |
Rent expenses | $21,400 | ||
Accounts payable | $107,000 | ||
i | Work in process inventory ($350 × 1075 hours) | $376,250 | |
Manufacturing overhead | $376,250 | ||
j | Finished good inventory | $870,000 | |
Work in process inventory | $870,000 | ||
k | Accounts receivable | $1,700,000 | |
Sale | $1,700,000 | ||
COGS | $900,000 | ||
Finished good inventory | $900,000 |
_____________________________________________________________________
2.
Prepare t-accounts as follows:
_____________________________________________________________
3.
Prepare a schedule of Cost of goods manufactured as follows:
Direct material: | |
Raw material inventory: Beginning | $40,000 |
Add: Purchase of raw material | $250,000 |
Raw material available | $290,000 |
Less: Raw material ending inventory | ($55,000) |
Raw material used in production | $235,000 |
Direct labor | $280,000 |
Manufacturing overhead applied to WIP | $376,250 |
Total manufacturing cost | $891,250 |
Add: Beginning WIP inventory | $31,000 |
Less: Ending WIP inventory | ($52,250) |
Cost of Goods manufactured | $870,000 |
4a 4b and 5 not answered... thank you signment Print View Page 1 Award: 5.00 points...
nment Print View Page 1 of Award: 5.00 points Froya Fabrikker AS of Bergen, Norwey is a wall company that manufactures specially 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 predetermined overhead rate was based on a cost formula that estimated $350.000 of manufacturing overhead for an estimated location base of 1,000 direct labor-hours. The following transactions took place...
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 $370,500 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account, $270,000.Raw...
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 $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
cant get number # 2 to come out right and number 4a and #5. please help...thank you nment Print View Page 1 of Award: 5.00 points Froya Fabrikker AS of Bergen, Norwey is a wall company that manufactures specially 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 predetermined overhead rate was based on a cost formula that estimated $350.000...
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 $399,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Problem 3-15 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 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 $399,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following...
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 $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year:Raw materials purchased on account, $230,000.Raw...
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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
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 $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: 1. Raw materials purchased on account, $210,000. 2. Raw materials used in production (all direct materials), $195,000. 3. Utility bills incurred on account, $61,000 (95% related to...
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 $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...