EXERCISE 3-17 (30 MINUTES)

3. Froya Fabrikker A/S

Schedule of Cost of Goods Manufactured

Direct materials:

Raw materials inventory, beginning... Nkr 30,000

Purchases of raw materials... 200,000

Materials available for use ... 230,000

Raw materials inventory, ending ... 45,000

Materials used in production... Nkr 185,000

Direct labor ... 230,000

Manufacturing overhead applied to work in

process... 390,000

Total manufacturing costs... 805,000

Add: Work in process, beginning ... 21,000