1 The raw materlals were purchased for use in production, $295,000 on account. 2 The raw materlals used in production (all direct materials), \$280,000. 3 The utility bills were incurred on account, \$78,000 (95\% related to factory operations, and the remainder related to selling and administrative activities). 4 The salary and wage costs accrued were $325,000 (Direct labor), $109,000 (Indirect labor), $205,000 (Selling and administrative salarles). repare a journal entry to close any balance In the Manufacturing Overhead account to Cost of Goods Sold. Notes: If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. Prepare a schedule of cost of goods sold. 9 The entry for manufacturing overhead cost applied to jobs. 10 The cost of goods manufactured for the year, $960,000. 11 The sales for the year (all on account) totaled $2,150,000. 12 The goods cost $990,000 according to thelr job cost sheets. Prepare an Income statement. Required: 1. Prepare journal entries to record the preceding transactions. 2. 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. Prepare journal entries to record the preceding transactions. Notes: If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Journal entry worksheet Note: Enter debits before credits. Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea oil 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 $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. The following transactions occurred during the year: a. Raw materials purchased on account, $295,000. b. Raw materials used in production (all direct materials), $280,000. c. Utility bills incurred on account, $78,000 ( 95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: e. Maintenance costs incurred on account in the factory, $73,000 f. Advertising costs incurred on account, $155,000. g. Depreciation recorded for the year, $91,000 ( 80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $105,000 ( 85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost applied to jobs, \$? ? j. Cost of goods manufactured, $960,000. k. Sales for the year (all on account) totaled $2,150,000. These goods cost $990,000 according to their job cost sheets. The beginning balances in the inventory accounts were: 5 The malntenance costs were Incurred on account in the factory, $73,000. - The advertising costs were Incurred on account, $155,000. 7 The depreclation was recorded for the year, $91,000 ( 80% related to factory equipment, and the remainder related to selling and administrative equipment). 8 The entry for rental cost incurred on account on bulldings, $105,000 ( 85% related to factory faclities, and the remainder related to selling and administrative facillties). Prepare a schedule of cost of goods manufactured. your entrles to T-accounts. (Don't forget to enter the beginning Inventory balances above