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 Next > Help Save & Exit 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). 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. 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. Reg 1 Reg 2 Reg 3 Req 4A Reg 4B Req 5 25 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal er required" in the first account field.) View transaction list Journal entry worksheet 8 12 1 5 6 7 4 3 1 2 Raw materials were purchased for use in production, $200,000 on account. Note: Enter debits before credits. Transaction Ceneral Journal Debit Credit Record entry Clear entry View general journal Raw materials were requisitioned for use in production (all direct materials), $185,000. Note: Enter debits before credits. Transaction General Journal Debit Credit b. View general journal Clear entry Record entry Next > 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. Transaction General Journal Debit Credit C. View general journal Record entry Clear entry Salary and wage costs accrued were $230,000 (Direct labor), $90,000 (Indirect labor), $110,000 (Selling and administrative salaries). Note: Enter debits before credits. Transaction General Journal Debit Credit d. View general journal Clear entry Record entry Maintenance costs were incurred on account in the factory, $54,000. Note: Enter debits before credits. Transaction Ceneral Journal Debit Credit Record entry Clear entry View general journal Advertising costs were incurred on account, $136,000. Note: Enter debits before credits. Debit Credit Transaction General Journal E. View general journal Clear entry Record entry Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). Note: Enter debits before credits. Debit Credit General Journal Transaction g View general journal Clear entry Record entry Noyt 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 General Journal Debit Credit h. View general journal Clear entry Record entry Moyt 1 6 7 8 h 10 11 12 Cost of goods manufactured for the year, $770,000. Note: Enter debits before credits. Transaction Ceneral Journal Debit Credit 1 Record entry Clear entry View general journal 10 12 8 1 5 7 6 Sales for the year (all on account) totaled $1,200,000. Note: Enter debits before credits. Debit Credit General Journal Transaction k(1). View general journa Clear entry Record entry CO 1 9 10 11 CEE These goods cost $800,000 according to their job cost sheets. Note: Enter debits before credits. Debit Credit Transaction General Journal k(2). 25 View general jou Clear entry Record entry