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 and 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 (all purchases and services were acquired on account) a Raw materials purchased for use in production, $285,000 b Raw materials requisitioned for use in production (all direct materials), $270,000 c Utility bills were incurred, $76,000 (85 related to factory operations, and the remainder related to selling and administrative activities) d Salary and wage costs were incurred Direct labor (950 hours) $ 315,000 Indirect labor $ 107,000 Selling and administrative salaries $ 195,000 e Maintenance costs were incurred in the factory, $71,000 f Advertising costs were incurred, $153,000 g Depreciation was recorded for the year, $89,000 (70 related to factory equipment, and the remainder related to selling and administrative equipment) h Rental cost incurred on buildings, $114,000 (75 related to factory operations, 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, $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 Raw materials $ 47,000 Work in process $ 38,000 Finished Goods $ 77,000 Required 1 Prepare journal entries to record the above data (If no entry is required for a transaction event, select No journal entry required in the first account field ) 2 Post your entries to T accounts (Dont forget to enter the opening inventory balances above ) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account

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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

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 and 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 (all purchases and services were acquired on account):

a.	Raw materials purchased for use in production, $285,000.
b.	Raw materials requisitioned for use in production (all direct materials), $270,000.
c.	Utility bills were incurred, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities).
d.	Salary and wage costs were incurred:


Direct labor (950 hours)	$	315,000
Indirect labor	$	107,000
Selling and administrative salaries	$	195,000

e.	Maintenance costs were incurred in the factory, $71,000.
f.	Advertising costs were incurred, $153,000.
g.	Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment).
h.	Rental cost incurred on buildings, $114,000 (75% related to factory operations, 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, $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:


Raw materials	$	47,000
Work in process	$	38,000
Finished Goods	$	77,000

Required:

1.	Prepare journal entries to record the above data. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.	Post your entries to T-accounts. (Dont forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.