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: a. Raw materials purchased on account, $210,000. b. Raw materials used in production (all direct materials), $195,000 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 f. Advertising costs incurred on account, $138,000. g. Depreciation was recorded for the year, $ costs incurred on account in the factory, $56,000 86.000 (75% related to factory equipment, and the rermainder 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). 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. overhead cost was applied to jobs, $ ? The balances in the inventory accounts at the beginning of the year were: 32,000 s 23,000 Work in Process K Prev 4 of 4 ! Next Work in Process Finished Goods $ 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. Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 4B Req s 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.) Journal entry worksheet 12 1 2 3 4 56 7 8 The raw materials were purchased for use in production, $210,000 on account. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) nts Recelvable Beg. Bal Beg. Bal. End. Bal End. Bal. Raw Materials Cost of Goods Sold Beg. Bal End. Bal End. Bal. Manufacturing in Process Beg. Bal. Beg. Bal. End. Bal. End. Bal. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Prepare a schedule of cost of goods manufactured Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total manufacturing costs Cost of goods K Req 2 Req 4A> 4 Req 1 Req 2 Req 3 Req 4A Req 48 Req 5 5 Prepare a journal entry to close any balance in the M transaction/event, select "No journal entry required in the first account field.) account to Cost of Goods s Sold. (If no entry is required f Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Clear entry Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold ok nces Req 4A Req 5 > Prey 4 of 4 Next Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Prepare an income statement for the year. Income Statement For the Year Ended Selling and administrative expenses: Req 4B