Fabrikker Company is a company that produces heavy equipment used by oil companies. The company uses an order-based cost accumulation system and charges overhead costs for each order based on direct hours worked. In early 2015, the overhead budget was Nkr (read: Krone) 360,000 with 900 hours of direct work (used to calculate predetermined overhead rates). Transactions that occurred during the current year were: Raw materials purchased on credit of Nkr200,000 Direct raw material demand for production of Nkr185,000 Payable utility expense of Nkr70,000 (90% for factory, and the rest for sales and administrative activities) Salary and wages during the year: Direct labor (975 hours) ................... Nkr230,000 Indirect labor ................................. Nkr90,000 Selling & Administrative ............... Nkr110,000 Maintenance expense for plant equipment of Nkr54,000 was paid in cash Advertising expenses of Nkr136,000 are still payable Depreciation of Nkr95,000 (80% for factory equipment, and the rest for sales and administrative activities) Building lease expense for the period amounted to Nkr120,000 (85% for factories and the rest for sales and administrative activities) Overhead costs charged (applied FOH) to orders are based on direct working hours of the current year COGM for the year amounted to Nkr770,000 Sales on account of Nkr1,200,000 with cost of goods sold of Nkr800,000.   Inventory account balance at the beginning of the year: Raw materials ......................... Nkr30,000 Work in Process. ................... Nkr21,000 Finished Goods ....................... Nkr60,000   REQUESTED: 1) Prepare a company transaction journal entry using a perpetual recording system! 2) Calculate the ending inventory for raw materials, Work in Process and Finished Goods!

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Fabrikker Company is a company that produces heavy equipment used by oil companies. The company uses an order-based cost accumulation system and charges overhead costs for each order based on direct hours worked. In early 2015, the overhead budget was Nkr (read: Krone) 360,000 with 900 hours of direct work (used to calculate predetermined overhead rates).

Transactions that occurred during the current year were:

  1. Raw materials purchased on credit of Nkr200,000
  2. Direct raw material demand for production of Nkr185,000
  3. Payable utility expense of Nkr70,000 (90% for factory, and the rest for sales and administrative activities)
  4. Salary and wages during the year:

Direct labor (975 hours) ................... Nkr230,000

Indirect labor ................................. Nkr90,000

Selling & Administrative ............... Nkr110,000

  1. Maintenance expense for plant equipment of Nkr54,000 was paid in cash
  2. Advertising expenses of Nkr136,000 are still payable
  3. Depreciation of Nkr95,000 (80% for factory equipment, and the rest for sales and administrative activities)
  4. Building lease expense for the period amounted to Nkr120,000 (85% for factories and the rest for sales and administrative activities)
  5. Overhead costs charged (applied FOH) to orders are based on direct working hours of the current year
  6. COGM for the year amounted to Nkr770,000
  7. Sales on account of Nkr1,200,000 with cost of goods sold of Nkr800,000.

 

Inventory account balance at the beginning of the year:

Raw materials ......................... Nkr30,000

Work in Process. ................... Nkr21,000

Finished Goods ....................... Nkr60,000

 

REQUESTED:

1) Prepare a company transaction journal entry using a perpetual recording system!

2) Calculate the ending inventory for raw materials, Work in Process and Finished Goods!

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Fabrikker Company is a company that produces heavy equipment used by oil companies. The
k. Sales on account of Nkr1,200,000 with cost of goods sold of Nkr800,000.
company uses an order-based cost accumulation system and charges overhead costs for each
order based on direct hours worked. In early 2015, the overhead budget was Nkr (read: Krone)
360,000 with 900 hours of direct work (used to calculate predetermined overhead rates).
Inventory account balance at the beginning of the year:
Transactions that occurred during the current year were:
Raw materials
Nkr30,000
a. Raw materials purchased on credit of Nkr200,000
Work in Process.
Nkr21,000
b. Direct raw material demand for production of Nkr185,000
Finished Goods
Nkr60,000
c. Payable utility expense of Nkr70,000 (90% for factory, and the rest for sales and administra-
tive activities)
REQUESTED:
d. Salary and wages during the year:
1) Prepare a company transaction journal entry using a perpetual recording system!
Direct labor (975 hours) .
Nkr230,000
2) Calculate the ending inventory for raw materials, Work in Process and Finished Goods!
Indirect labor
Nkr90,000
Selling & Administrative . . Nkr110,000
End of document I
e. Maintenance expense for plant equipment of Nkr54,000 was paid in cash
f. Advertising expenses of Nkr136,000 are still payable
g. Depreciation of Nkr95,000 (80% for factory equipment, and the rest for sales and adminis-
trative activities)
h. Building lease expense for the period amounted to Nkr120,000 (85% for factories and the
rest for sales and administrative activities)
i. Overhead costs charged (applied FOH) to orders are based on direct working hours of the
current year
j. COGM for the year amounted to Nkr770,000
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Transcribed Image Text:File Tools View Document3 - Word (Product Activation Failed) Quiz1 Document1 * Document2 Document3 * Fabrikker Company is a company that produces heavy equipment used by oil companies. The k. Sales on account of Nkr1,200,000 with cost of goods sold of Nkr800,000. company uses an order-based cost accumulation system and charges overhead costs for each order based on direct hours worked. In early 2015, the overhead budget was Nkr (read: Krone) 360,000 with 900 hours of direct work (used to calculate predetermined overhead rates). Inventory account balance at the beginning of the year: Transactions that occurred during the current year were: Raw materials Nkr30,000 a. Raw materials purchased on credit of Nkr200,000 Work in Process. Nkr21,000 b. Direct raw material demand for production of Nkr185,000 Finished Goods Nkr60,000 c. Payable utility expense of Nkr70,000 (90% for factory, and the rest for sales and administra- tive activities) REQUESTED: d. Salary and wages during the year: 1) Prepare a company transaction journal entry using a perpetual recording system! Direct labor (975 hours) . Nkr230,000 2) Calculate the ending inventory for raw materials, Work in Process and Finished Goods! Indirect labor Nkr90,000 Selling & Administrative . . Nkr110,000 End of document I e. Maintenance expense for plant equipment of Nkr54,000 was paid in cash f. Advertising expenses of Nkr136,000 are still payable g. Depreciation of Nkr95,000 (80% for factory equipment, and the rest for sales and adminis- trative activities) h. Building lease expense for the period amounted to Nkr120,000 (85% for factories and the rest for sales and administrative activities) i. Overhead costs charged (applied FOH) to orders are based on direct working hours of the current year j. COGM for the year amounted to Nkr770,000 Activate Windows Go to Settings to activate Windows. Screens 1-2 of 2 - | 100%
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