Question

please help! with Req 2

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 $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 on account, $200,000. b. Raw materials used in production (all direct materials) $185,000. c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. 9. Depreciation was recorded for the year. $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs, $ ? J. Cost of goods manufactured for the year, $770,000, k. Sales for the year (all on account) totaled $1.200,000. These goods cost $800.000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Prev 1 of 1 Next

Answer 1

Froya Fabrikker xlsx - Excel (Product Activation Failed) 7 - OX Sign in FILE FORMULAS DATA REVIEW VIEW HOME INSERT PAGE LAYOUT X Cut Calibri - 11 Copy * Format Painter BIU AutoSum - 29 General Good Bad AY M Wrap Text = = = * Merge & Center Paste $-% Normal Conditional Format as Neutral Formatting Table Calculation Check Cell Insert Delete Format + Hill Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number 1 Styles Cels T131 X f -4690*160% B D C 1 ) к L M N P R S т U V w a) 1 2 2 3 4 5 6 Accounting titles & Explanations Rew materials inventory Accounts payable Debit Credit 200,000 200,000 b) 185,000 work in process inventory Raw materials inventory 7 185,000 c) 53000 manufacturing overhead utility expense Accounts payable 2000 70,000 8 9 10 11 12 13 14 15 16 d) work in process inventory Manufacturing overhead Salary oxpense Salary & wages payable 230,000 90,000 110,000 430,000 e) 51,000 18 19 20 21 Manufacturing overhead Accounts payable 54.000 F) Artvertising expense Accounts payable 136,000 136,000 ) Manufacturing overhead Depreciation expenso Accumulated depreciation 76000 19000 95,000 23 24 25 26 27 28 29 30 h) Manufacturing overhead Rent expense Accounts payable 102000 18000 120,000 Sheet1 READY E U Type here to search e C с e x3 AENG 1:08 PM B/30/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) X5 FILE HOME X cut 7 - OX Sign in INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW AutoSum - Calibri - 11 29 General Good Bad DE COPY AY M Wrap Text = = = * Merge & Center Paste BIU Normal Conditional Format as Neutral Formatting - Table $-% Calculation Check Cell * Format Painter Insert Delete Format + Hill Clear Sort & Find & Filter - Select Editing Font Alignment Number 1 Styles Cels Clipboard - T131 X f -4690*160% B D C 1 к L M N P R S т U V w X 27 28 h) Manufacturing overhead Rent expense Accounts payable 102000 18000 120.000 30 31 i) 390,000 Work in process inventory Manufacturing overhead 390,000 33 31 35 36 i) finished poods inventory Work in process inventory 770,000 770,000 k) 1,200,000 Accounts receivable sales 1,200,000 39 40 41 47 43 800.000 cost of goods sold finished goods inventory 800,000 Accounts receivable Berbal 1,200,000 Sales Berbal 45 46 1,200,000 k end bal 1,200,000 1,200,000 end sal 48 19 50 51 Raw Materials Beg.Bal 30,000 200,000 185,000 h. cost of goods sold Beg Bal k. 800,000 53 51 55 56 End bal 45,000 End bal 800,000 Sheet1 + READY E U Type here to search Ei WE e C с е x A ENG 1:09 PM B/30/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) X5 FILE HOME X cut 7 - OX Sign in INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW AutoSum" AY M Calibri -AA - 11 29 General Bad Good DE COPY Wrap Text === **Merge & Center -A $ - % Normal * Conditional Format as Neutral Formatting Table Calculation Check Cell Insert Delete Format + Hill Clear Paste Format Painter BIU Clipboard T131 - X Sort & Find & Filter - Select Editing Font Alignment Number Styles Cels fi -4690* 160% B D C 1 P R S т U V w X Beg Bal 58 59 60 Work in process 21,000 185,000 770,000 d. 230,000 . i. 390000 к L M N Manufacturing overhead Bey. Bal C. 63000 390,000 d. 90,000 e 54,000 3 76000 h. 102000 5,000 End bal Advertising expense Beg bal F. 136,000 end bal 56,000 63 61 65 finished goods Beg bal 60,000 j 770,000 800,000 k 67 End bal 30,000 end bal 136,000 69 70 71 Accumulated Depreciation beg bal 95,000 - Utilities expense Reghal C. 7000 73 74 75 76 End bol 95,000 end bal 7,000 Accounts payable Bey.al 78 79 80 81 Salaries expense Beg Bal d. 110,000 200,000 a. 70,000 C 54,000 126,000 1. 120,000 h. 690,000 end bal end bal 110,000 83 81 85 86 Sheet1 READY E U Type here to search Ei WE e се x A ENG 1:09 PM B/30/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) 7 - OX Sign in AutoSum - General Good Bad AY M X5 FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW X cut Calibri - 11 29 Wrap Text Copy Paste BIU -A === **Merge & Center Format Painter Cipboard Font Alignment T131 - X -4690* 160% $-% Normal 4. Conditional Format as Neutral Formatting Table Calculation Check Cell Insert Delete Format + Hill Clear Sort & Find & Filter - Select Editing Number 1 Styles Cels B D C K L M N 0 P R S T U V w х Nu TR General journal 1 manufacturing overhead cost of poods sold Debit Credit 5,000 1 5,000 61 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 Schedule of Cost of goods sold Beginning finished goods inventory Add:Cost of goods manufactured Cost of goods available for sale lesscending finished goods inventory Unadjusted cost of goods sold less:overapplied overhead Adjusted cost of goods sold 60,000 770,000 830,000 30,000 800,000 5,000 795,000 (39-40) Direct materials Direct labor cost overhead applied total cost units produced cost per unit 8000 9,200 1560 18760 1 4590 price to be charged 4690 160% 7504 1,200,000 795,000 405,000 Income statement Sales cost of goods sold Gross margin Selling and administrative expense Utilities expense Advertising expense Salaries expense Depreciation expense rent expense 136 137 138 139 7000 136,000 110,000 19,000 18000 290,000 115,000 Net operating income 140 141 112 143 144 Sheet1 READY E U Type here to search 2 e C с e x3 AENG 1:10 PM B/30/2019

Froya Fabrikker xlsx - Excel (Product Activation Failed) X5 FILE HOME X cut 7 - OX Sign in INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri AutoSum - - 11 -AA 29 General Good Bad EXT AY M COPY Wrap Text Merge & Center Paste BIU $ - % Normal - Conditional Format as Neutral Formatting Table Calculation Check Cell Insert Delete Format + Hill Clear * Format Painter Sort & Find Filter - Select Editing Cipboard Fon: Alignment Number Styles Cels H68 A B C C Г H 1 K L M N P R S T U V w 1 2 al 3 4 5 6 Accounting titles & Explanations Raw materials inventory Accounts payable Debit Credit 270,000 270,000 b) 255,000 work in process inventory Raw materials inventory 7 255,000 manufacturing overhead utility expense Accounts payable 65700 7300 73,000 8 9 10 11 12 13 14 15 16 d) work in process inventory Manufacturing overhead Salary expense Salary & wages payable 300,000 104,000 180,000 584,000 68,000 18 19 20 21 Manufacturing overhead Accounts payable 68,000 Advertising expense Accounts payable 150,000 150,000 A) Manufacturing overhead Depreciation expense Accumulated depreciation 64500 21500 86,000 23 24 25 26 27 28 29 30 88000 Manufacturing overhead Rent expense Accounts payable 22200 110,200 Sheet1 READY E Type here to search Ei e C с e x3 RA AENG 7:30 AM 9/2/2019
change total of accounts payable balance to 580,000