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 $ 315,000 $ 107,000 $ 195,000 e. Maintenance costs incurred on account in the factory, $71,000 f. Advertising costs incurred on account, $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 account, $114,000 (75% 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, $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 Work in Process Finished Goods Required: $ 47,000 $ 38,000 $ 77,000 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 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 Journal entry worksheet 1 2 345678 12 The raw materials were purchased for use in production, $285,000 on account. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal < Req 1 Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 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.) View transaction list 1 The raw materials were purchased for use in production, $285,000 on account. 12 account. 2 The raw materials used in production (all direct materials), $270,000. 3 The utility bills were incurred on account, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities). 4 The salary and wage costs accrued were $315,000 (Direct labor), $107,000 (Indirect labor), $195,000 (Selling and administrative salaries). 5 The maintenance costs were incurred on account in the Note: = journal entry has been entered Record entry Clear entry Credit View general journal < Req 1 Req 2 > ces Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 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.) View transaction list 5 The maintenance costs were incurred on account in the factory, $71,000. 6 The advertising costs were incurred on account, $153,000. 7 The depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). 8 The entry for rental cost incurred on account on buildings, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). 9 The entry for manufacturing overhead cost applied to Note: = journal entry has been entered Record entry Clear entry 12 > account. Credit View general journal Req 1 Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 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.) View transaction list 8 The entry for rental cost incurred on account on buildings, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). 9 The entry for manufacturing overhead cost applied to jobs. 12 account. 10 The cost of goods manufactured for the year, $940,000. Credit 11 The sales for the year (all on account) totaled $2,050,000. 12 The goods cost $970,000 according to their job cost sheets. journal entry has been entered Note : Record entry Clear entry View general journal < Req 1 Req 2 > Complete this question by entering your answers in the tabs below. 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.) Accounts Receivable Debit Credit Beginning Balance Ending Balance Sales Debit Credit Beginning Balance Ending Balance Raw Materials Cost of Goods Sold Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Work in Process Manufacturing Overhead Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Finished Goods Advertising Expense Finished Goods Advertising Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Accumulated Depreciation Utilities Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Beginning Balance Ending Balance Beginning Balance Ending Balance Ending Balance Accounts Payable Salaries Expense Debit Credit Debit Credit Beginning Balance Ending Balance Depreciation Expense Salaries & Wages Payable Debit Credit Debit Credit Beginning Balance Ending Balance Beginning Balance Ending Balance Beginning Balance Ending Balance Accounts Payable Salaries Expense Debit Credit Debit Credit Beginning Balance Ending Balance Depreciation Expense Salaries & Wages Payable Debit Credit Debit Credit Beginning Balance Rent Expense Debit Credit Beginning Balance Ending Balance Ending Balance < Req 1 Req 3 > 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 5 Prepare a schedule of cost of goods manufactured. Direct materials: Total raw materials available Direct materials used in production Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured < Req 2 Req 4A > 0 Req 1 Req 2 Req 3 Req 4A Req 4B Req 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 1 Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal < Req 3 Req 4B > 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 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold < Req 4A Req 5 > 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 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended Selling and administrative expenses: 0 0 $ 0 < Req 4B Req 5 >