@inveton Managern, MSU. Cnerso D 2 Mal - brok grem Minot State Univers M M AppsP

Question

@inveton Managern, MSU. Cnerso D 2 Mal - brok grem Minot State Univers M M AppsPrane fedeal Cred- 3 Froys Fabrisker A'S of Bergen Noway, is a smal company thet manufoctures speciality heavy equpment for use in North Sea o telds. The company uses a job-onder costing system that appses manufacturing overhead cost to jobs on the bass of direct lebor- hours tts esomoted alocation bese of 1OtO direct labor hours. The following tranactions took place during the year s predetermined overheed rate was based on a cost Formule that estimated $373,700 of manufacturning overhend for an Raw materials purchesed on account $255,000 b Raw materiais used in producson (ll diect materials) $240,000 cumytis re r ed on accout $70 00 95% related to tactory op een es and the renonder nee ted to setr gard oom strate d Accrued salery and wage costs e Maimenance costs incurred on account in the factory $65.000 E Advertsing coss incurred on account, $147000 g Depreciation vwas recorded for the year. s83.000 180% relaned to facnory eoupment and thereierlated to seling and h Rental cost ncured on account S108.000 (35% reined to tactory fachtes, and the tenander releted 10 seeing and sonnistrathe tive equipment aci es { Manufacturng overead cost was acolled tojooss_ j Cost or goods manufectured for the yea $880.000 k Saies for she year (al on account totaled $1750000 These goods cost $9na.000 according t0 ther job cost sheets The baiances n the nveory accounts at the beginning of the year ere O Type here to search

Explanation / Answer

Accounting titles & Explanations Debit Credit a) Raw materials inventory 255,000 Accounts payable 255,000 b) work in process inventory 240,000 Raw materials inventory 240,000 c) manufacturing overhead 66500 utility expense 3500 Accounts payable 70,000 d) work in process inventory 285,000 Manufacturing overhead 101,000 Salary expense 165,000 Salary & wages payable 551,000 e) Manufacturing overhead 65,000 Accounts payable 65,000 f) Advertising expense 147,000 Accounts payable 147,000 g) Manufacturing overhead 66400 Depreciation expense 16600 Accumulated depreciation 83,000 h) Manufacturing overhead 91800 Rent expense 16200 Accounts payable 108,000 i) Work in process inventory 401,450 Manufacturing overhead 401,450 j) finished goods inventory 880,000 Work in process inventory 880,000 k) Accounts receivable 1,750,000 sales 1,750,000 cost of goods sold 910,000 finished goods inventory 910,000 Accounts receivable Sales Beg.bal Beg.bal k. 1,750,000 1,750,000 k. end bal 1,750,000 1,750,000 end bal Raw Materials cost of goods sold Beg.Bal 32,000 Beg.Bal a. 255,000 240,000 b. k. 910,000 End bal 47,000 End bal 910,000 Work in process Manufacturing overhead Beg Bal 23,000 Beg.Bal b. 240,000 880,000 j c. 66500 401,450 i d. 285,000 d. 101,000 i. 401450 e. 65,000 g. 66400 end bal 69,450 h. 91800 10,750 End bal finished goods Advertising expense Beg bal 62,000 Beg.bal j 880,000 910,000 k f. 147,000 End bal 32,000 end bal 147,000 Accumulated Depreciation Utilities expense beg.bal Beg bal g. 83,000 g. c. 3500 End bal 83,000 end bal 3,500 Accounts payable Salaries expense Beg.bal Beg.Bal 255,000 a. d. 165,000 70,000 c. 65,000 e. 147,000 f. 108,000 h. End bal 645,000 end bal 165,000 Depreciation expense Salaries & wages payable Beg.bal Beg.bal g. 16600 551,000 d. End bal 16,600 end bal 551,000 rent expense beg bal h. 16200 End bal 16,200 overhead applied = (373,700/1010)*1085 = 401450 (change the figure if read incorrect due to figures being bit blurry)

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