journal entries
S.no | account title particulars | debit ($) | credit ($) |
1 | RAW MATERIAL INVENTORY | 250000 | |
Accounts payable | 250000 | ||
2 | work in process | 235000 | |
RAW MATERIAL INVENTORY | 235000 | ||
3 | manufacturing overhead | 62100 | |
Utility expenses | 6900 | ||
Utilities payable | 69000 | ||
4 | work in process | 250000 | |
Manufacturing overhead | 100000 | ||
Selling and administrative salaries | 160000 | ||
Wages payable | 510000 | ||
5 | manufacturing overhead | 64000 | |
Accounts payable | 64000 | ||
6 | advertising expenses | 146000 | |
Accounts payable | 146000 | ||
7 | manufacturing overhead | 61500 | |
Depreciation expenses | 20500 | ||
Accumulated depreciation | 82000 | ||
8 | manufacturing overhead | 85600 | |
Rental expenses | 21400 | ||
Rental payable | 107000 | ||
9 | work in process (note) | 376250 | |
Manufacturing overhead | 376250 | ||
10 | finished goods | 870000 | |
Work in process | 870000 | ||
11 | account receivable | 1700000 | |
Sales | 1700000 | ||
12 | cost of goods sold | 900000 | |
Finished goods | 900000 |
PRE DETERMINED OVERHEAD= 350000/1000= 350 PER DIRECT LABOUR HOUR
APPILED OVERHEAD= 1075×350= 376250
RAW MATERIAL INVENTORY
Beginning balance | 40000 | work in process | 235000 |
Accounts payable | 250000 | ||
Balance | 55000 |
WORK IN PROCESS
Beginning balance | 31000 | finished goods | 870000 |
Raw material inventory | 235000 | ||
Wages payable | 250000 | ||
Manufacturing overhead | 376250 | ||
Balance | 22250 |
Finished goods
Beginning balance | 70000 | cost of goods sold | 900000 |
Work in process | 870000 | ||
Balance | 40000 |
manufacturing overhead
Utilities payable | 62100 | work in process | 376250 |
Wages payable | 100000 | ||
Accounts payable | 64000 | ||
Accumulated depreciation | 61500 | ||
Rental payable | 85600 | ||
Balance (overapplied) | 3050 |
3.SCHEDULE OF COST OF GOODS MANUFACTURED
Direct material | 235000 |
Direct labour | 250000 |
Manufacturing overhead | 376250 |
Total manufacturing cost | 861250 |
Add beginning work in process | 31000 |
Less ending work in process | (22250) |
COST OF GOODS MANUFACTURED | 870000 |
4A
Manufacturing overhead( overapplied) | 3050 | |
Cost of goods sold | 3050 |
4b SCHEDULE OF COST OF GOODS SOLD
Beginning finished goods | 70000 |
Cost of goods manufactured | 870000 |
Cost of goods available for sale | 940000 |
less.ending finished goods | (40000) |
Unadjusted cost of goods sold | 900000 |
Less overapplied overhead | (3050) |
adjusted cost of goods sold | 896950 |
5. INCOME STATEMENT
Revenue | 1700000 |
Less cost of goods sold | (896950) |
Gross margin | 803050 |
Less.expenses | |
Salaries | (160000) |
Advertising | (146000) |
Depreciation | (20500) |
Rental | (21400) |
utilities | (6900) |
Operating income | 448250 |
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Froya Fabrik A/S or Bergen, Norway, is a small company that manufactures speciatyheavy equipment for use...
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,...
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,...
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 $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year a. Raw materials purchased...
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 $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
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 $380,000 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,...
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 $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
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 $374,000 of manufacturing overhead for an estimated allocation base of 1,100 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
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 $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
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 $380,000 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,...
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,...