Froya Fabrik AS of Bergen, Norway, is a small company that manufactures specialty Heavy equipment for Norm Sao nelas. The company uses a job-order cosong system that applies manufacturing overhead cost to jobs on the basof director hours. Its predetermined overeed rate was based on a cost formula that estimated $350.000 of manufacturing overhead for estimated allocation base of 1000 direct labor hours. The following transactions took place during the year a. Raw materials purchased on account, $250,000 b Raw materials used in production all direct materials) $235.000 c Utility bills incurred on account, $69.000 (90% related to factory operations, and the remainder related to seeing and administrative actvities) d. Accrued salary and wage costs Direct labor (1,075 hours) Indirect labor Selling and administrative salaries S160,000 e. Maintenance costs incurred on account in the factory $64.000 Advertising costs incurred on account. $146,000 g. Depreciation was recorded for the year, 582,000 (75% related to factory equipment, and the remainderested to selling and administrative equipment). n. Rental cost incurred on account, $107.000 (80% related to factory facilities, and the remainder related to selling and administrative facilities). Manufacturing overhead cost was applied to jobs, $_? J. Cost of goods manufactured for the year, 5870,000 k. Sales for the year (all on account) totaled $1,700,000. These goods cost $900.000 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 54e, Bee $ 31,600 $ 70, Bee Required: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to T-accounts (Dont 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A Req 4B Reg 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/ew required" in the first account field.) View transaction list Journal entry worksheet 1 of 1 * View transaction list Print Journal entry worksheet References Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No lournal required in the first account field.) View transaction list Tint Journal entry worksheet 1 2 3 rences 7 8 ..... 12 The salary and wage costs accrued were $280,000 (Direct labor), $100,000 (Indirect labor), $160,000 (Selling and administrative salaries). Note: Enter debits before credits. Debit Credit General Journal Transaction View general Journal Clear enwy Record entry Req 2 > Prev 100 event, select No journal en View transaction list Journal entry worksheet The maintenance costs were incurred on account in the factory, $64,000. Note: Enter debits before credits General Journal Debit Transaction Credit View general joumal Clear entry Record entry Reg 2 > Prey 1 of 1 View transaction list Journal entry worksheet Prey Journal entry worksheet nces Prey 1 of SALON IST Journal entry worksheet 1 ... 4 5 6 7 8 9 ... 12 A The entry for manufacturing overhead cost applied to jobs. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Clear entry Record entry Req2 > Journal entry worksheet Journal entry worksheet The sales for the year (all on account) totaled $1,700,000. Note: Enter debits before credits General Journal Debit Credit Transaction k(1) View general journal Clear entry Record entry Req2 > Prey Section/event, select View transaction list Journal entry worksheet
