Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea oll fields. The company uses ajob-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overheadrate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 directabor-hours. The following transactions occurred during the year:a. Raw materials purchased on account, $200,000.6. Raw materials used in production (all direct materials), $185,000.E. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrativeactivities).d. Accrued salary and wage costs:Direct labor (975 hours)Indirect laborSelling and administrative salariesMaintenance costs incurred on account in the factory, $54,000.f. Advertising costs incurred on account, $136,000.Depreciation recorded for the year, $95.000 (80% related to factory equipment, and the remainder related to selling andadministrative equipment).h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrativefacilities).1. Manufacturing overhead cost applied to jobs, $__?___J. Cost of goods manufactured, $770,000.Sales (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cost sheets.The beginning balances in the Inventory accounts were:Raw MaterialsWork in ProcessFinished Goods$ 230,000$ 90,000$ 110,000$ 30,000$ 21,000$ 60,000Required:. Prepare Journal entries to record the preceding transactions.Post your entries to T-accounts. (Don't forget to enter the beginning Inventory balances above.)3. Prepare a schedule of cost of goods manufactured.4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.4B. Prepare a schedule of cost of goods sold.5. Prepare an Income statement.Complete this question by entering your answers in the tabs below.Required 1Required 2 Required 3Prepare a schedule of cost of goods sold.Froya Fabrikker A/SSchedule of Cost of Goods SoldRequired 4A Required 4B< Required 4ARequired 5Required 5 >

JOB ORDER COSTINGCompanies will choose a costing system that is appropriate to the nature of their…

Answered: Required 1 Required 2 Required 3…

Required 1 Required 2 Required 3 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Required 4A Required 48 Required 5 < Required 4A Required 5 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cp 6-4
QS 4-3 (Algo) Merchandise accounts and computations LO C1 Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company Accumulated depreciation Beginning inventory. Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $8,700 27,000 a. Goods available for sale a. Cost of goods sold a. Gross profit 700 680 200 2,500 $708 11,500 6,900 2,100 14,300 22,500. a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint Not all information may be necessary. b. Compute net income for each company. b. Net income for Krug Service Company b. Net income for McNeil Merchandising Company
The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/2021 Purchases: 9/7 9/25 Sales: 9/10 9/29 6,000 units were on hand at the end of September. Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. 2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. (Round cost per unit to 2 decimal places.) Average Cost Beginning Inventory Purchases: 9/7 9/25 Total 8,000 units @ $10.00 6,000 units @ $10.70 9,000 units @ $12.60 8,000…
How to calculate this using the Periodic Weighted Formula method & the Perpetual FIFO method
Step 2 Solution Part a. Inventory Valuation (FIFO) Date Purchase Cost of goods sold Balance May Units Unit cost Total cost Units Unit cost Total cost Units Unit cost Total cost 1 100 $4 $400 6 810 $4.40 $3,564 100 810 $4 $4.40 $400 $3,564 7 100 250 $4 $4.40 $400 $1,100 560 $4.40 $2,464 10 350 $4.40 $1,540 210 $4.40 $924 12 450 $5 $2,250 210 450 $4.40 $5 $924 $2,250 15 210 40 $4.40 $5 $924 $200 410 $5 $2,050 18 340 $4.80 $1,632 410 340 $5 $4.80 $2,050 $1,632 22 410 40 $5 $4.80 $2,050 $192 300 $4.80 $1,440 25 510 $4.60 $2,346 300 510 $4.80 $4.60 $1,440 $2,346 30 250 $4.80 $1,200 50 510 $4.80…
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Ex2\ Determine the missing amounts in each the following independent cases: Data حدد المبالغ المفقودة في كل من الحالات المستقلة التالية Case A Inventory \1 Inventory 31\12 Purchases of raw material Case B 15,000 30,000 Case C 20,000 90,000 100,000 70,000 Direct material used 85,000 95,000 100,000 Direct labor 125,000 160,000 Manufacturing overhead Total manufacturing Inventory work in process I\I Inventory work in process 31\12 Cost of goods manufacturing Inventory finished goods I\I Cost of goods available for sale Inventory finished goods 31\12 Cost of goods sold Sales 250,000 345,000 20,000 35,000 340,000 520,000 35,000 5,000 350,000 525,000 50,000 40,000 370,000 25,000 545,000 330,000 480,000 ? 255,000 Gross profit Selling and administrative expenses 170,000 75,000 Ex3 The following data refer to the Fresno fashions co. for the year 2016 Sales revemue 950,000 work in process inventory 3112 was 30,000 work in process inventory I\1 was 40,000 \ 200 000 duinictration ernenses 150.000…
Exercise 6-9 Moving weighted average cost flow assumption-perpetual LO2, 3 Telamark Company uses the moving weighted average method for inventory costing. Required: The following incomplete inventory sheet regarding Product W506 is available for the month of March 2023. Complete the inventory sheet. (Use the value of the ending inventory as your base number and adjust the COGS $ amount to the required amount to make the Total Goods Available for Sale to the total of the Value of the ending inventory and the COGS total. Negative value should be indicated with minus sign. Round your intermediate and final answers to 2 decimal places.) Date Units Mar 1 2 3 4 7 17 28 Purchases/Transportation-In/ (PurchaseReturns/Discounts) 32 Cost/Unit Brought Forward 27 $ 96.00 97.00 Total $ Cost of Goods Sold/(Returns to Inventory) Units Cost/Unit 40 (20) 47 35 Total $ Units 52 $ Balance in Inventory Avg Cost/Unit 94.00 $ Total $ 4,888.00