Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll 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 $336,000 of manufacturing overhead for an estimated allocation base of 1050 direct labor hours. The following transactions took place during the year a Raw materials purchased on account. $225,000 b. Raw materials used in production (all direct materials). $210,000 culity bilis incurred on account. $58,000 (95% related to factory operations, and the remainder related to selling and administrative a. Accrued salary and wage costs rint Direct labor (1,125 hours) Indirect labor Selling and administrative salaries $ 255,000 95, $ 135,00 ences e Maintenance costs incurred on account in the factory, $59.000 Advertising costs incurred on account. $141.000 9 Depreciation was recorded for the year $89.000 (70% related to factory equipment, and the remainder related to selling and Rental cost incurred on account. $114.000 (75% related to factory facilities, and the remainder related to selling and administrative Manufacturing overhead cost was applied to jobs, 3 K Sales for the year (all on account totaled $1,450,000. These goods cost $850.000 according to their job cost sheets. Cost of goods manufactured for the year, 5820,000 The balances in the inventory accounts at the beginning of the year were Raw Materials Work in process Finished Goods $ 35,00 $ 25,00 $ 65, 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 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. Regt Reg 2 Reg 2 Red 4 Reg 48 Reg 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event. Select Mojournal entry required in the first account ed.) V transaction View journal entry worksheet Complete this question by entering your answers in the tabs below. Regt Reg 2 Reg RA Reg4 Res Prepare fournal entries to record the preceding transactions (if no entry is required for transaction/event, select "Ne journal entry required in the first account field) Journal entry worksheet 7 12 > The utility bills were incurred on account, $58.000 (95 related to factory operations, and the remainder related to selling and administrative activities). Monterdichtere credits Transaction Joma Debit Credit C Manufacturing owned expense Accounts payable Recy Clear entry Viewer journal Req2 > Prey 1 of 2 Next > here to search OBI F
