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 Jabor-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 9. 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) 1. 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 $ 47,000 $ 38,000 $77,000 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. 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. View transaction list View journal entry worksheet NO Credit Transaction General Journal Debit 285,000 Book 1 Raw materials Accounts payable 285,000 Print 2 b Work in process Raw materials IN 3 Manufacturing overhead Uslities expense Accounts payable 4 IN d Work in process Manufacturing overhead Salaries expense Salanes and wages payable Manufacturing overhead Accounts payable f. Advertising expense Accounts payable g. Manufacturing overhead Depreciation expense Accumulated depreciation .8 h. Manufacturing overhead Rent expense Accounts payable 9 Work in process Manufacturing overhead 10 1. Finished goods Work in process 11 k(1) Accounts receivable Sales 12 k(2) Cost of goods sold Finished goods Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Recevable Sales Beg. Bal. Beg Bal End. Bal End. Bal Raw Materials Cost of Goods Sold Beg Bal Beg. Bat. End, Bat End. B Work In Process Manufacturing Overhead Beg Ba Beg Bal End Bal Check my wa Utilities Expense Accumulated Depreciation Beg Bal. Beg Bat End. Bal. End. Bat. Accounts Payable Salaries Expense Beg Bat Beg Bal End. Bal. End. Bal. Depreciation Expense Salaries & Wages Payable Beg Bal Beg. Bol End, Bal End. Bal Bar Funense Reg 1 Req 2 Req3 Req 4A Req 4B Reg 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured 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 Reg 2 Reg GA > Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. Transaction General Journal Dobit Credit 1 Record entry Clear entry View general journal Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold