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 $360,000 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, $200,000. b. Raw materials used in production (all direct materials), $185,000. c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. g. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs. $_? J. Cost of goods manufactured for the year, $770,000. totaled $1200000 Theen aande enet 200 000 necording to their inh cnet chante ces administrative equipment). h. Rental cost incurred on account, $120,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs, $? J. Cost of goods manufactured for the year, $770,000. k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 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: $ 30,000 $ 21,000 $ 60,000 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 Journal entry worksheet < 1 5 6 7 8 9 10 10 Cost of goods manufactured for the year, $770,000. Note: Enter debits before credits. Transaction j. 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet K 1..... 5 6 7 8 9 Sales for the year (all on account) totaled $1,200,000. Note: Enter debits before credits. Transaction k(1). 10 10 11 12 General Journal Debit Credit Record entry Clear entry View general journ < Prev 2 of 2 Journal entry worksheet < 1 .... 5 6 7 8 9 10 11 12 These goods cost $800,000 according to their job cost sheets. Note: Enter debits before credits. Transaction k(2). General Journal Debit Credit Record entry Clear entry View general jou