Check my work 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 $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $255,000. b. Raw materials 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: Direct labor (1,085 hours) Indirect labor Selling and administrative salaries $ 285,000 $ 101,000 $ 165,000 e. Maintenance costs incurred on account in the factory, $65,000 f. Advertising costs incurred on account, $147,000. g. Depreciation was recorded for the year, $83,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $108,000 (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, $880,000. k. Sales for the year (all on account) totaled $1,750,000. These goods cost $910,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods $ 41,000 $ 32,000 $ 71,000 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. 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. Reg 1 Req 2 Reg 3 Req 4A Reg 4B Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View transaction list Journal entry worksheet The utility bills were incurred on account, $70,000 (95% related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 12 > The salary and wage costs accrued were $285,000 (Direct labor), $101,000 (Indirect labor), $165,000 (Selling and administrative salaries). Note: Enter debits before credits. General Journal Debit Credit Transaction d. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 12 > The maintenance costs were incurred on account in the factory, $65,000. Note: Enter debits before credits. General Journal Debit Credit Transaction e. Record entry Clear entry View general journal Journal entry worksheet IIII. The advertising costs were incurred on account, $147,000. Note: Enter debits before credits. General Journal Debit Credit Transaction f. Record entry Clear entry View general journal Journal entry worksheet The depreciation was recorded for the year, $83,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). Note: Enter debits before credits. General Journal Debit Credit Transaction g. Record entry Clear entry View general journal Journal entry worksheet The entry for rental cost incurred on account on buildings, $108,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). Note: Enter debits before credits. Transaction General Journal Debit Credit h. Record entry Clear entry View general journal Journal entry worksheet The sales for the year (all on account) totaled $1,750,000. Note: Enter debits before credits. General Journal Debit Credit Transaction k(1). Record entry Clear entry View general journal Journal entry worksheet Req 1 Req 2 Reg 3 Req 4A Req 4B Req 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 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 Req 1 Reg 2 Req 3 Reg 4A Req 4B Reg 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Req 1 Reg 2 Req 3 Req 4A Reg 4B Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses: 0 $ 0