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Problem 3 15

The document contains journal entries and T-accounts for Froya Fabrikker A/S, detailing transactions related to raw materials, work in process, manufacturing overhead, and expenses. It includes a schedule of cost of goods manufactured and cost of goods sold, culminating in an income statement that shows sales revenue, cost of goods sold, and net income. The financial data reflects the company's operational activities over the year, including adjustments for overapplied overhead.

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0% found this document useful (0 votes)
10 views9 pages

Problem 3 15

The document contains journal entries and T-accounts for Froya Fabrikker A/S, detailing transactions related to raw materials, work in process, manufacturing overhead, and expenses. It includes a schedule of cost of goods manufactured and cost of goods sold, culminating in an income statement that shows sales revenue, cost of goods sold, and net income. The financial data reflects the company's operational activities over the year, including adjustments for overapplied overhead.

Uploaded by

k60.2105004016
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

journal entries
No. General journal Debit Credit
a raw meterial inventory 200,000
account payable 200,000
b work in process 185,000
raw material inventory 185,000
c manufacturing overhead (70,000x90%) 63,000
utility expenses (70,000-63,000) 7,000
account payable 70,000
d work in process 230,000
manufacturing overhead 90,000
selling and administrative expense 110,000
wages payable 430,000
e manufacturing overhead 54,000
account payable 54,000
f advertising expenses 136,000
account payable 136,000
g manufacturing overhead (95,000x80%) 76,000
depreciation expenses (95,000-76,000) 19,000
accumulated depreciation 95,000
h manufacturing overhead (120,000x85%) 102,000
rental expenses (120,000-102,000) 18,000
account payable 120,000
i work in process 390,000 NOTE: i
manufacturing overhead 390,000
j finished goods 770,000
work in process 770,000
k account receivable 1,200,000
sales revenue 1,200,000
cost of goods sold 800,000
finished goods 800,000
POHR= estimated overhead/estimated direct labor hours = 360,000/900=400 per DLH
Applied overhead=actual direct labor hours x POHR = 975x400=390,000
2.T-account
Accounts Receivable Sales Revenue
(k) $1,200,000 (k)

End Bal $1,200,000 End Bal

Raw Materials Cost Of Goods Sold


Beg Bal $30,000 Beg Bal
(a) $200,000 (b) $185,000 (k) 800,000

End Bal $45,000 End Bal 800,000

Work In Process
Beg Bal 21,000 Manufacturing Overhead
(b) 185,000 (j) 770,000 Beg Bal
(d) 230,000 (c) 63,000 (i)
(i) 390,000 (d) 90,000
( e) 54,000
End Bal 56,000 (g) 76,000
(h) 102,000

End Bal

Finished Goods Advertising expense


Beg Bal 60,000 Beg Bal
(j) 770,000 (k) 800,000 (f) 136,000

End Bal 30,000 End Bal 136,000

Accumulated Depreciation Utilities Expense


Beg Bal Beg Bal
(g) 95,000 ( c) 7,000

End Bal 95,000 End Bal 7,000

Accounts Payable Salaries Expense


Beg Bal Beg Bal
(a) 200,000 (d) 110,000
( c) 70,000
( e) 54,000 End Bal 110,000
(f) 136,000
(h) 120,000 Salaries and Wages Payable
Beg Bal
End Bal 580,000 (d)
Depreciation Expense End Bal
Beg Bal
(g) 19,000 Rent Expense
Beg Bal
End Bal 19,000 (h) 18,000

End Bal 18,000


3. prepare a schedule of cost of goods manufactured
Revenue Froya Fabrikker A/S
$1,200,000 Schedule of cost of goods manufactured
Direct material
$1,200,000 Beginning raw materials inventory 30,000
Add: Purchase of raw materials 200,000
Goods Sold Total raw materials available for use 230,000
Less: Ending raw materials inventory -45,000
Direct materials used in production
Direct labor
Manufacturing overhead applied
Total manufacturing costs
Add: Beginning work in process inventory
uring Overhead Total cost of work in process
Less: Ending work in process inventory
390,000 Cost of goods manufactured

5,000

ing expense

es Expense

es Expense

Wages Payable

110,000
110,000

Expense
s manufactured 4.1 prepare journal entry to close any balance in the M.O acc t
No. General journal Debit
ured 1 manufacturing overhead 5,000
Cost of goods sold

4.2 prepare a schedule of cost of goods sold


Froya Fabrikker A/S
Schedule of cost of goods sold
185,000 Finished goods inventory, Beginning 60,000
230,000 Add: Cost of goods manufactured 770,000
390,000 Goods available for sale 830,000
805,000 Less: Finished goods inventory, Ending -30,000
21,000 Unadjusted cost of goods sold 800,000
826,000 Less: Overapplied overhead -5,000
-56,000 Adjusted cost of goods sold 795,000
770,000
alance in the M.O acc to COGS 5. prepare an incomestatement for the year
Credit Froya Fabrikker A/S
Income Statement
5,000 For The End Of Year
Sales revenue
oods sold Cost of goods sold
Gross margin
d Selling & Administrative expense
Utilities expense 7,000
Advertising expense 136,000
Salaries & Wages expense 110,000
Depreciation expense 19,000
Rent expense 18,000
Total Selling & Administrative expense
Net Income
1,200,000
795,000
405,000

290,000
115,000

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