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: ces Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 S 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 Saved Help Save & 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). i. 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 $ 30,000 $21,000 $60,000 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 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. Reg 1 Reg 2 Reg 3 Req 4A Reg 4B Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No jo required" in the first account field.) View transaction list Journal entry worksheet > 12 6 7 8 1 CY Prey 1 of 3 Next > Journal entry worksheet 4 5 6 7 12 Utility bills were incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. t Transaction ces General Journal Debit Credit C. Record entry Clear entry View general journal Salary and wage costs accrued were $230,000 (Direct labor), $90,000 (Indirect labor), $110,000 (Selling and administrative salaries). 12 Note: Enter debits before credits. ces Transaction General Journal d. Debit Credit Record entry Clear entry View general journal Prey w HT Neyt 12 Maintenance costs were incurred on account in the factory, $54,000. Note: Enter debits before credits. Transaction es General Journal Debit Credit e Record entry Clear entry View general journal Prev 1 of 3 Next > 12 Advertising costs were incurred on account, $136,000. Note: Enter debits before credits. Transaction General Journal f. Debit Credit Record entry Clear entry View general journal EN Prev 1 of 3 Next > BRE 1 2 3 4 5 6 8 BE 12 Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). ts Note: Enter debits before credits. Print Transaction Ferences General Journal Debit Credit g. Record entry Clear entry View general journal 6 7 12 Entry for rental cost incurred on account on buildings, $120,000 (85% related to factory operations, and the remainder related to selling and administrative facilities). Note: Enter debits before credits. Transaction es General Journal h. Debit Credit Record entry Clear entry View general journal 5 6 7 8 OD 12 Cost of goods manufactured for the year, $770,000. Note: Enter debits before credits. Transaction s General Journal Debit Credit j. View general journal Clear entry Record entry 10 Sales for the year (all on account) totaled $1,200,000. 12 Note: Enter debits before credits. Transaction General Journal Debit k(1). Credit Record entry Clear entry View general journal 8 9 10 These goods cost $800,000 according to their job cost sheets. 11 Note: Enter debits before credits. Transaction General Journal k(2). Debit Credit Record entry Clear entry View general journal Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 epare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, sel quired" in the first account field.) iew transaction list View journal entry worksheet No Transaction General Journal Debit Credit Req 2 >