3 Problem 3-15 (Static) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froyo Fabrikker A/S of Dergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea of fields. The company uses a job-order costing system that apples manufacturing overhead cost to jobs on the basis of direct labor hours ts predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor hours. The following transactions took place during the year Raw materials purchased on account, $200,000 b Raw materials used in production (all direct materials), $185,000 C. Uhay bills incurred on account, $70.000 (90% related to factory operations, and the remainder related to selling and adminstrative activites d Accrued salary and wage costs Direct labor (975) It $250,000 $110,000 Maintenance costs incurred on account in the factory $54,000 Advertising costs incurred on account, $136,000 o Depreciation was recorded for the year, $95.000 (80% related to factory equipment, and the remainder related to selling and adminstrative equipment Rental cost incurred on account, $120,000 85% related to factory facilities, and the remainder related to seling and administrative facts) Manufacturing overhead cost was applied to jotn $ Cost of goods manufactured for the year $770,000 Sales for the your call on account) totaled $1200000. These goods cost $800.000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were Paterials Met in Process (shed Goods Required $21,000 $60,000 1 Prepare journal entries to record the preceding transactions 2. Post your entries to 1-accounts don't forget to enter the beginning inventory balances above) 3 Prepare a schedule of cost of goods manufactured AA Prebate a soumal entry to close any balance in the Manutecturing Overhead account to Cost of Goods Sold Debit eBook Beginning Balance Accounts Receivable Sales Credit Debit Credit Beginning Balance 1,200,000 Print Ending Balance 1,200,000 Ending Balance References Raw Materials Cost of Goods Sold Debit Credit Debit Credit Beginning Balance Beginning Balance a 200,000 Ending Balance 200,000 Ending Balance Work in Process Manufacturing Overhead Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Finished fande Beginning Balance Ending Balance Work in Process Manufacturing Overhead Debit Credit Debit Credit Beginning Balance Ending Balance Finished Goods Advertising Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Accumulated Depreciation Utilities Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Accounts Payable Salaries Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 3 nts eBook Print Ending Balance Beginning Balance Ending Balance Refererices Accounts Payable Debit Credit Ending Balance Beginning Balance Ending Balance Salaries Expense Debit Credit Depreciation Expense Salaries & Wages Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Beginning Balance Ending Balance Rent Expense Debit Credit Ending Balance 3 S 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 4B. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Book Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Print ferences Prepare a schedule of cost of goods manufactured. Direct materials: Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured < Req 2 Req 4A > 0 Req 1 Req 2 Req 3 Req 4A Req 48 Req 5 Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Solc transaction/event, select "No journal entry required" in the first account field.) View transaction list 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. Transaction a General Journal Debit Credit Record entry Clear entry Req 3 View general journal Req 4B > < Prev 3 of 4 3 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 for the year. Complete this question by entering your answers in the tabs below. Book Req 1 Req 2 Req 3 Req 4A Req 48 Req 5 Print erences Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold < Req 4A Req 5 >