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Problem 3-15(Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froya Fabrikker...

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Accounting

Problem 3-15(Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4]
Froya Fabrikker A/S of Bergen, Norway, manufactures speclalty heavy equipment for use In North Sea oll fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions occurred during the year:
a. Raw materlals purchased on account, $255,000.
b. Raw materlals used in production (all direct materials), $240,000.
c. Utility bills Incurred on account, $70,000(95% related to factory operations, and the remainder related to selling and administrative activities).
d. Accrued salary and wage costs:
\table[[Direct labor (1,085 hours
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