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 $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year:

Problem 3-15 Journal Entries; T-Accounts; Financial Statements (L03-1, 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 $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: :33 a. Raw materials purchased on account, $210,000. b. Raw materials used in production (all direct materials), $195,000. c. Utility bills incurred on account, $61,000 (95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,025 hours) Indirect labor Selling and administrative salaries $ 240,000 $ 92,000 $ 120,000 e. Maintenance costs incurred on account in the factory, $56,000 f. Advertising costs incurred on account, $138,000. g. Depreciation was recorded for the year, $86,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $111,000 (80% 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, $790,000. k. Sales for the year (all on account) totaled $1,300,000. These goods cost $820,000 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 $32,000 $ 23,000 $62,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4A Req 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.) NA Traneantian Ganaral Internal Dahit complete this question by entering your answers in the taps perow. Req 1 Req 2 Req3 Req 4A Req 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.) 21 No Transaction General Journal Debit Credit 1 a. 210,000 Raw materials Accounts payable 210,000 2 b. 195,000 Work in process Utilities expense X 195,000 3 C. Manufacturing overhead 57,950 3,050 Utilities expense Accounts payable 61,000 4 d. Work in process Manufacturing overhead Salaries expense Salaries and wages payable 240,000 92,000 120,000 452,000 5 e. 56,000 Manufacturing overhead Accounts payable 56,000 6 f. 138,000 Advertising expense Accounts payable 138,000 7 g. Manufacturing overhead Accumulated depreciation Accumulated depreciation 64,500 21,500 86,000 8 h. Manufacturing overhead Rent expense Accounts payable OOOOOOOOOOOOOOO 88,800 22,200 111,000 9 i. Work in process 369,000 Manufacturing overhead 369,000 10 790,000 Finished goods Work in process 790,000 11 k(1). 1,300,000 Accounts receivable Sales 1,300,000 12 k(2). 820,000 Cost of goods sold Finished goods 820,000 Accounts Receivable Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Raw Materials Cost of Goods Sold Beg. Bal. Beg. Bal. End Bal. End. Bal. Work in Process Manufacturing Overhead Beg. Bal Beg. Bal End. Bal. End. Bal. Finished Goods Advertising Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accumulated Depreciation Utilities Expense Beg. Bal. Beg Bal. End. Bal. End. Bal. Accounts Payable Salaries Expense Beg. Bal. Beg Bal. End. Bal End. Bal Depreciation Expense Salaries & Wages Payable Beg Bal. Beg. Bal End. Bal. End. Bal. Rent Expense Beg. Bal. Pro 3 of 3 HE 3 facilities) i. Manufacturing overhead cost was applied to jobs, $_? . j. Cost of goods manufactured for the year, $790,000. k. Sales for the year (all on account) totaled $1,300,000. These goods cost $820,000 according to their job cost sheets. 54 nts The balances in the inventory accounts at the beginning of the year were: 00:53:53 Raw Materials Work in Process Finished Goods $32,000 $23,000 $62,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 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 Materials used in production Total manufacturing costs 0 Cost of goods manufactured aw w