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 $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $240,000. b. Raw materials used in production (all direct materials), $225,000. c. Utility bills incurred on account, $67,000 (95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,275 hours). Indirect labor Selling and administrative salaries $ 270,000 $ 98,000 $ 150,000 e. Maintenance costs incurred on account in the factory, $62,000 f. Advertising costs incurred on account, $144,000. g. Depreciation was recorded for the year, $80,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $105,000 (90% 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, $850,000. k. Sales for the year (all on account) totaled $1,600,000. These goods cost $880,000 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: $ 38,000 $ 29,000 $ 68,000 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. Deanariurnal antructo clace anyhalanen in the Manufacturing Overhead sccount to Cast of Cande Cald 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 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold Requirea: 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: < Req 4B 0 0 $ 0 Req 5 > Check my work 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 View journal entry worksheet No Transaction General Journal 1 a. Raw materials Accounts payable 2 b. Work in process Raw materials Debit Credit 240,000 240,000 225,000 225,000 3 C. Manufacturing overhead Utilities expense 63,650 3,350 Accounts payable 67,000 4 d. Work in process 270,000 Manufacturing overhead 98,000 Salaries expense 150,000 Salaries and wages payable 518,000 5 e. Manufacturing overhead Accounts payable 62,000 62,000 6 f. Advertising expense Accounts payable 144,000 144,000 Accounts payable 67,000 4 d. Work in process 270,000 Manufacturing overhead 98,000 Salaries expense 150,000 Salaries and wages payable 518,000 5 e. Manufacturing overhead Accounts payable 62,000 62,000 6 f. Advertising expense Accounts payable 144,000 144,000 7 g. Manufacturing overhead 68,000 ces Depreciation expense 12,000 Accumulated depreciation 80,000 8 h. Manufacturing overhead 94,500 Rent expense 10,500 Accounts payable 105,000 i. Work in process 395,250 Manufacturing overhead 395,250 10 j. Finished goods Work in process 850,000 850,000 F 11 k(1). Accounts receivable 1,600,000 Sales 1,600,000 12 k(2). Cost of goods sold 880,000 Finished goods 880,000 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 Beginning Balance a. Ending Balance Beginning Balance b. d. i. Debit Debit 1,600,000 1,600,000 Sales Debit Credit Beginning Balance Ending Balance 1,600,000 k. 1,600,000 Raw Materials Cost of Goods Sold Credit Debit Credit 38,000 Beginning Balance 240,000 225,000 b. k. 880,000 53,000 Work in Process Credit 29,000 225,000 850,000 270,000 395,250 Ending Balance 69,250 Ending Balance 880,000 Manufacturing Overhead Debit Credit Beginning Balance C. 63,650 395.250 . d. 98,000 e. 62,000 g. 68,000 h. 94,500 Ending Balance Beginning Balance b. d. Debit 53,000 Work in Process Credit Debit 29,000 Beginning Balance 225,000 270,000 850,000 j. C. d. 395,250 e. Ending Balance 69,250 Beginning Balance Ending Balance Manufacturing Overhead Credit 63,650 395,250 1. 98,000 62,000 g. 68,000 h. 94,500 Ending Balance 9,100 Finished Goods Debit Credit Advertising Expense Debit Credit 68,000 Beginning Balance 850,000 880.000 k. f. 144,000 Ending Balance 144,000 Debit Beginning Balance Ending Balance 38,000 Accumulated Depreciation Utilities Expense Credit Debit Credit Beginning Balance 80,000 g. C. 3,350 80,000 Ending Balance 3,350 Accounts Payable Debit Credit Beginning Balance Debit Beginning Balance 240,000 a. d. 67,000 c. Salaries Expense 150,000 Credit Beginning Balance Ending Balance Beginning Balance Ending Balance Debit Accumulated Depreciation Credit Beginning Balance 80,000 g. 80,000 Ending Balance Accounts Payable Debit Credit Debit Beginning Balance 9. Ending Balance Beginning Balance h. Debit Depreciation Expense 12,000 12,000 Rent Expense 10,500 Ending Balance 10,500 Debit Utilities Expense 3,350 3,350 Salaries Expense Debit Beginning Balance 240,000 a. d. 150,000 67,000 c. 62,000 e. Ending Balance 150,000 144,000 f. 105,000 h. 618,000 Credit Credit Salaries & Wages Payable Credit Debit Credit Beginning Balance Credit Ending Balance 518,000 d. 518,000 Check my w 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. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning raw materials inventory Add: Purchases of raw materials Total raw materials available Less: Ending raw materials inventory Direct materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured 29,000 38,000 240,000 278,000 53,000 $ 225,000 270,000 395,250 890,250 919,250 69,250 $ 850,000 < Req 2 Req 4A > 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 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 View journal entry worksheet No 1 Transaction 1 Manufacturing overhead Cost of goods sold General Journal < Req 3 Req 4B > Debit Credit 9,100 9,100 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 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold < Req 4A Req 5 > Work in Process $ 29,000 $ 68,000 Finished Goods 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: < Req 4B 0 $ 0 Req 5 >