1) journal entries
S.no | particular | Debit ($) | credit ($) |
1 | Raw material inventory | 280000 | |
Accounts payable | 280000 | ||
2 | work in process | 265000 | |
RAW MATERIAL INVENTORY | 265000 | ||
3 | manufacturing overhead | 60000 | |
Utility expenses | 15000 | ||
Utilities payable | 75000 | ||
4 | work in process | 310000 | |
Manufacturing overhead | 106000 | ||
Selling and administrative salaries | 190000 | ||
Wages payable | 606000 | ||
5 | manufacturing overhead | 70000 | |
Accounts payable | 70000 | ||
6 | advertising expenses | 152000 | |
Accounts payable | 152000 | ||
7 | manufacturing overhead | 74800 | |
Depreciation expenses | 13200 | ||
Accumulated depreciation | 88000 | ||
8 | Manufacturing overhead | 101700 | |
Rental expenses | 11300 | ||
Rental payable | 113000 | ||
9 | work in process (note below) | 418000 | |
Manufacturing overhead | 418000 | ||
10 | finished goods | 930000 | |
Work in process | 930000 | ||
11 | accounts receivable | 2000000 | |
Sales | 2000000 | ||
12 | cost of goods sold | 960000 | |
Finished goods | 960000 |
Note pre determined OVERHEAD = 399000/1050 = 380 per direct labour hrs
1100 × 380 = $418000
2) RAW MATERIAL INVENTORY
Beginning balance | 46000 | work in process | 265000 |
Accounts payable | 280000 | ||
Balance | 61000 |
work in process
Beginning balance | 37000 | finished goods | 930000 |
Raw material inventory | 265000 | ||
Wages payable | 310000 | balance | 100000 |
MANUFACTURING OVERHEAD | 418000 |
Finished goods
Beginning balance | 76000 | cost of goods sold | 960000 |
Work in process | 930000 | balance | 46000 |
MANUFACTURING OVERHEAD
Utilities payable | 15000 | work in process | 418000 |
Accounts payable | 70000 | ||
Accumulated depreciation | 74800 | ||
Rental payable | 101700 | ||
Wages payable | 106000 | ||
Balance (overapplied) | 5500 |
3). SCHEDULE OF COST OF GOODS MANUFACTURED
Particular | amount ($) |
Direct material | 265000 |
Direct labour | 310000 |
Manufacturing overhead | 418000 |
Total | 993000 |
Add beginning work in process | 37000 |
(-) end in work in process | (100000) |
cost of goods manufactured | 930000 |
4a).
Manufacturing overhead (overapplied) | 5500 | |
Cost of goods sold | 5500 |
4b) SCHEDULE OF COST OF GOODS SOLD
Particular | amount ($) |
Beginning balance | 76000 |
Cost of goods manufactured | 930000 |
Cost of goods available for sale | 1006000 |
(-) ending finished goods | (46000) |
(-) overapplied overhead | (5500) |
Cost of goods sold | 954500 |
5). Income statement
Particular | amount ($) |
Revenue | 2000000 |
(-) cost of goods sold | (954500) |
Gross margin | 1045500 |
(-) rental expenses | (11300) |
(-) Utilities | (15000) |
(-) Selling and administrative salaries |
(190000) |
(-) Advertising | (152000) |
(-) Depreciation | (13200) |
net operating income | 664000 |
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please help Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy...
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 $336,000 of manufacturing overhead for an estimated allocation base of 1,050 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 $380,000 of manufacturing overhead for an estimated allocation base of 1,000 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 $374,000 of manufacturing overhead for an estimated allocation base of 1,100 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 $374,000 of manufacturing overhead for an estimated allocation base of 1,100 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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year a. Raw materials purchased...
Froya Fabrik AS of Bergen, Norway, is a small company that manufactures specialty Heavy equipment for Norm Sao nelas. The company uses a job-order cosong system that applies manufacturing overhead cost to jobs on the basof director hours. Its predetermined overeed rate was based on a cost formula that estimated $350.000 of manufacturing overhead for estimated allocation base of 1000 direct labor hours. The following transactions took place during the year a. Raw materials purchased on account, $250,000 b 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 $336,000 of manufacturing overhead for an estimated allocation base of 1,050 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 fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labo hoursIts 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 laborhours. The following transactions took place during the year Froya Fabrikker A/S of Bergen, Norway,...
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- ed 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: points a. Raw materials purchased on...
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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased...