Expert Q&A Froys Fabrikker A/S of Bergen, Norgey, is a small company that manufactures specialty heavy equipment for use in North Sea of 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 alocation bese 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 material, $185,000 Unity bits incurred on account, $70.000 (80% related to factory operations, and the remainder related to selling and administrative activities Accrued salary and wage costs Maintenance costs incurred on account in the factory, $54,000 Advertising costs incurred on account, $136,000 Depreciation was recorded for the year, $95.000 (80% related to factory equipment, and the remainder related to selling and administrative equipment Rental cost incurred on account $20.000 (85% related to factory facilities Manufacturing overhead cost was applied to jobs, S Cast of goods manufactured for the year, $270.000 remainder related to sing and administrative Sales for the year at on account totaled $1200.000. These goods cost $800,000 according to their job cost sheets Done Done Expert Q&A The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods Required: 30000 $21,000 60,000 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 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Accounts Receivable Debi Credit Beginning Balance ginning Ending Balance Ending Balance Credit Expert Q&A Raw Materials Cost of Goods Sold Debit Credit Debit Credit Deginning Balance Deginning Balance Ending flalance Ending Balance Work in Process Manufacturing Overhead Debit Credit Debit Credit Beginning Balance Beginning Balance 2 Finished Goode D Creat Debit Crede Beginning Balance Done Ending Balance Expert Q&A Acousted Depreciation Unites Expense Debre Crede Debit Crest Beginning Balance Beginning Balance Ending Balance Ending Balanc Accounts Payslite Dab Credit Debit Credt Beginning Balance Beginning Balance Ending Balance Babit Depreciation Expense Ending Balance Salaries & Wages Payable Done Ending Balance Beginning Balance Ending Balance Beginning Balance Ending Balance Debit Depreciation Expense Expert Q&A Salaries & Wages Payable Credit Debit Credit Beginning Balance Rent Expense Debit Credit Ending Balance Done Expert Q&A 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 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 Diwet 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. t. Advertising costs incurred on account. $136,000 g 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) L Manufacturing overhead cost was applied to jobs, $7 Cost of goods manufactured for the year, $770,000 Sales for the year (all on account totaled $1,200,000. These goods cost $800,000 according to their job cost sheets Expert Q&A Froya Fabrikker A/S of Bergen, Norgay, is a small company that manufactures specialty heavy equipment for use in North Sea of Selds. 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 a. Raw materials purchased on account, $200,000 b. Raw materials used in production (all direct materials) $185,000 Utility bits 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 Des Labor (975) Indirect laber Selling and administrative salaries $230,000 110,000 e. Maintenance costs incurred on account in the factory, $54,000 Advertising costs incurred on account, $136.000 Depreciation was recorded for the year, $95.000 (80% related to factory equipment, and the remainder related to selling and administrative equipment Rental cost incured on account. $120.000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, $7 Cost of goods manufactured for the year, $770,000 Sales for the year (all on account totaled $1,200,000. These goods cost $800,000 according to their job cost sheets Done 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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: 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: 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. 1. Advertising costs incurred on account, $136,000. g. 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). i. 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