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 $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $220,000. b. Raw materials used in production (all direct materials), S205,000. c. Utility bills incurred on account, $63,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct labor (1,075 hours) Indirect labor Selling and administrative salaries $ 250,00 $ 94, see $ 130, eee e. Maintenance costs incurred on account in the factory, $58,000 f. Advertising costs incurred on account, $140,000. g. Depreciation was recorded for the year, $88,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $113,000 (90% related to factory facilities, and the remainder related to selling and administrative facilitles). 1. Manufacturing overhead cost was applied to jobs, $_? . J. Cost of goods manufactured for the year, $810,000. k. Sales for the year (all on account) totaled $1,400,000. These goods cost $840,000 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 $ 34,000 $ 25,000 $ 64, eee 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. Reg 1 Reg 2 Reg 3 Rea 4A Reg 4B Reg 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 journal entry worksheet NO Transaction General Journal Debit Credit 1 Raw materials 220,000 Accounts payable 220,000 2 b. 205.000 Work in process Raw materials 205,000 3 C. 6.000 Utilities expense Manufacturing overhead Accounts payable 56.700 63.000 4 d. 130.000 250.000 Salaries expense Work in process Manufacturing overhead Salaries and wages payable 94,000 474,000 5 58,000 Manufacturing overhead Accounts payable 58.000 f. 140.000 Advertising expense Accounts payable 140,000 7 74.800 Manufacturing overhead Depreciation expense Accumulated depreciation 13.200 88.000 00 h. Manufacturing overhead 101.700 11.300 Rent expense Accounts payable 113.000 9 i. Work in process Manufacturing overhead Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4A Reg 4B Reg 5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) 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. Ball 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. End. Bal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Req 48 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 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Req 4B Reg 5 Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 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. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Req 4B Reg 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 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 S 0