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 and 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 $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account): a. Raw materials purchased for use in production, $250,000. b. Raw materials requisitioned for use in production (all direct materials), $235,000. c. Utility bills were incurred, $69,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage costs were incurred: bok rences Direct labor (1,075 hours) Indirect labor Selling and administrative salaries $280,000 $ 100,000 $ 160,000 e. Maintenance costs were incurred in the factory. $64,000. 1. Advertising costs were incurred, $146,000. g. Depreciation was recorded for the year, $82,000 (75% related to factory equipment and the remainder related to selling and administrative equipment). WYMI UULUUVEYIM. h. Rental cost incurred on buildings. $107.000 (80% related to factory operations, 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, $870,000. k. Sales for the year (all on account) totaled $1,700,000. These goods cost $900,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Ook Tint rences Raw materials $40,000 Work in process 31,000 Finished Goods $70,000 Required: 1.Prepare journal entries to record the above data. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Raw materials were purchased for use in production, $250,000 on account. Note: Enter debits before credits Transaction General Journal Debit Credit 2.Post your entries to T-accounts. (Don't forget to enter the opening inventory balances below.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account Accounts Receivable Sales End, Bal End. Bal Raw Materials Cost of Goods Sold Bog. Bal Work in Process Manufacturing Overhead Bal. Bal. End. Bal. Finished Goods Advertising Expenso og. Bat. End. Bal. End. Bal Accumulated Depreciation Utilities Expense End Bal End. Bal. Accounts Payable Salaries Expense End. Bal. Depreciation Expense Salaries & Wages Payable End. Bal End. Bat. Rent Expense End Bal 3. Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Materials available for use ces Materials used in production Total manufacturing cost Cost of goods manufactured 4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of 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 ook Tint Journal entry worksheet rences Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits Event 1 General Journal Debit Credit Froya Fabrikker A/S Schedule of Cost of Goods Sold Goods available for sale 5 Unadjusted cost of goods sold Adjusted cost of goods sold 5. Prepare an income statement for the year. s Froya Fabrikker A/S Income Statement For the Year Ended eBook Print eferences Selling and administrative expenses: 6.Job 412 was one of the many jobs started and completed during the year. The job required $9.000 in direct materials and 40 hours of direct labor time at a total direct labor cost of $9,900. If the job contained four units and the company billed at 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? Price charged for Job 412 per unit