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 $378,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year a Raw materials purchased on account, $285,000 b. Raw materials used in production (all direct materials). $270,000 c. Utility bills incurred on account, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (950 hours) Indirect labor Selling and administrative salaries 5 315,000 $107.000 $195.000 e Maintenance costs incurred on account in the factory, 571000 1 Advertising costs incurred on account, $153,000 9. Depreciation was recorded for the year. 889.000 (70% related to factory equipment, and the remainder related to selling and h 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, $ J. Cost of goods manufactured for the year. $940,000 k Sales for the year (all on account) totaled $2,050,000. These goods cost $970.000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were Row Materials Work in Process Finished Goods $ 47,000 $ 35,000 3.77,000 Required: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to Taccounts. (Don't forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods manufactured 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. Req1 Reg 2 Red 3 Req 4A Reg 48 Reg 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials Beginning raw materials inventory 03 47.000 Add: Purchases of raw materials 285,000 Total raw materials available 332,000 Los Ending raw materials Inventory (62000) Materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing costs Add Beginning work in process inventory $ 270.000 315.000 399,000 776,000 776.000 1.552.000 82.000 Less Ending work in process inventory Cost of goods manufactured 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 Req 1 Reg 2 Req3 Req 4A Req 48 Reg 5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable 2,050,000 Sales Beg Bal Beg Bal End Bal 2,050,000 End, Bal Beg Bal Raw Materials 470,000 2.850,000 2.700,000 Cost of Goods Sold 940,000 Beg Bal End Bal 940,000 End Bal 620,000 Manufacturing Overhead Beg Bal Work in Process 38,000 270,000 940,000 Beg Bal End Bal 632000 End Bal Finished Goods Advertising Expense Beg Bal Bog Bal End Bal End Bal
