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Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea of
The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods $ 46,0
Journal entry worksheet I m 2 3 4 5 6 7 8 ..... 12 The raw materials were purchased for use in production, $280,000 on accoun
Homework Journal entry worksheet 3 4 5 6 7 8 ..... 12 The raw materials used in production (all direct materials), $265,000.
Journal entry worksheet < 1 2 4 5 6 7 8 ..... 12 The utility bills were incurred on account, $75,000 (80% related to factory
lomework i Journal entry worksheet < 1 2 3 h 5 6 7 8 ..... 12 > The salary and wage costs accrued were $310,000 (Direct labor
Journal entry worksheet < 1 2 3 4 6 7 8 ..... 12 The maintenance costs were incurred on account in the factory, $70,000. Note
Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 12 The advertising costs were incurred on account, $152,000. Note: Enter debi
Journal entry worksheet < 1 2 3 4 5 6 8 ..... 12 The depreciation was recorded for the year, $88,000 (85% related to factory
ework 0 Journal entry worksheet < 1 2 3 4 5 6 7 ... 12 > The entry for rental cost incurred on account on buildings, $113,000
Journal entry worksheet < 1 ..... 4 5 6 7 8 9 ... 12 The entry for manufacturing overhead cost applied to jobs. Note: Enter d
lomework Journal entry worksheet 1 ..... 5 6 7 8 9 10 ... 12 The cost of goods manufactured for the year. $930,000. ok Note:
Journal entry worksheet < 1 ... 5 6 7 8 9 10 11 12 The sales for the year (all on account) totaled $2,000,000. Note: Enter de
.com/flow/connect.html nework 0 Journal entry worksheet < 1 ... 5 6 7 8 9 10 11 12 The goods cost $960,000 according to their
Req 1 Reg 2 Req3 Req 4A Req 4B Reg 5 Post your entries to T-accounts. (Dont forget to enter the beginning inventory balances
wur.com/how/connect.html Ch 3 Homework Finished Goods Advertising Expense Beg. Bal. End. Bal. Accumulated Depreciation beg Ba
ints Req 1 Req 2 Redes Req 4A Req 48 Req 5 eBook Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedu
Req1Reg2Req31 Req 4A Req 18 Reqs Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost o
4B. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Complete this question by entering
u. Hepale an Income statement for the year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Re
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Answer #1

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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