5 Problem 3-15 (Static) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4) Froya Fabrikker A/S of Bergen, Norway, is a small company that 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 on the basis of direct labor- hours. Its 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: DO a. Raw materials purchased on account, $200,000. b. Raw materials used in production (all direct materials). $185,000. c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: ences Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account. $136,000, 9. Depreciation was recorded for the year. $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs, $_? J. Cost of goods manufactured for the year, $770,000. k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process $30,000 $21.00 Raw Materials Work in Process Finished Goods $ 30,000 $ 21,000 $ 60,000 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. 4. 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. Reg 1 Reg 2 Reg 3 Req 4A Req 48 Reg 5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Recevable Sales Beg Bal Beg Bal K. End. Bal. End. Bal. Cost of Goods Sold Beg Bal Raw Materials 30,000 200.000 Beg. Bat. k. 185,000 800,000 End. Bal. 800,000 End Bal. 45,000 Work in Process Manufacturing Overhead Manufacturing Overhead Work In Process 21,000 Beg. Bat. Beg. Bal End. Bal. 21,000 End. Bal. Advertising Expense Finished Goods 60,000 Beg. Bal. Bog. Bal. 1. 136,000 End. Bal. 136,000 End. Bal 60.000 Accumulated Depreciation Utilities Expense Beg. Bal Beg. Bal 19 95,000 End. Bal. 95,000 End. Bal. Accounts Payable Salaries Expense Beg Bal Beg Bal End. Bal Accounts Payable Salaries Expense Beg Bal Beg. Bal. End. Bal End. Bal. Depreciation Expense Salaries & Wages Payable Bog. Bal Beg. Bal d g d. End. Bal End. Bal. Rent Expense Bog. Bal End. Bal. ( Req1 Req3 > 3. Prepare a scneaule of cost or gooas manufacturea. 4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 48. 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. Req 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for 0 Cost of goods manufactured ( Req2 Req 4A > 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. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal 4B, Prepare a schedule of cost of goods solo 5. Prepare an income statement for the year. nts Complete this question by entering your answers in the tabs below. Reg 1 eBook Req 2 Req3 Req 4A Reg 4B Reg 5 Prepare an income statement for the year. Print Froya Fabrikker A/S Income Statement For the Year Ended References 0 Selling and administrative expenses: 0 $ 0 Raw Materials Work in Process Finished Goods $ 30,000 $ 21,000 $ 60,000 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. 4. 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. Reg 1 Reg 2 Reg 3 Req 4A Req 48 Reg 5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Recevable Sales Beg Bal Beg Bal K. End. Bal. End. Bal. Cost of Goods Sold Beg Bal Raw Materials 30,000 200.000 Beg. Bat. k. 185,000 800,000 End. Bal. 800,000 End Bal. 45,000 Work in Process Manufacturing Overhead Manufacturing Overhead Work In Process 21,000 Beg. Bat. Beg. Bal End. Bal. 21,000 End. Bal. Advertising Expense Finished Goods 60,000 Beg. Bal. Bog. Bal. 1. 136,000 End. Bal. 136,000 End. Bal 60.000 Accumulated Depreciation Utilities Expense Beg. Bal Beg. Bal 19 95,000 End. Bal. 95,000 End. Bal. Accounts Payable Salaries Expense Beg Bal Beg Bal End. Bal Accounts Payable Salaries Expense Beg Bal Beg. Bal. End. Bal End. Bal. Depreciation Expense Salaries & Wages Payable Bog. Bal Beg. Bal d g d. End. Bal End. Bal. Rent Expense Bog. Bal End. Bal. ( Req1 Req3 > 3. Prepare a scneaule of cost or gooas manufacturea. 4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 48. 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. Req 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for 0 Cost of goods manufactured ( Req2 Req 4A > 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. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal 4B, Prepare a schedule of cost of goods solo 5. Prepare an income statement for the year. nts Complete this question by entering your answers in the tabs below. Reg 1 eBook Req 2 Req3 Req 4A Reg 4B Reg 5 Prepare an income statement for the year. Print Froya Fabrikker A/S Income Statement For the Year Ended References 0 Selling and administrative expenses: 0 $ 0