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 $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $240.000. b. Raw materials used in production (all direct materials). $225,000. c. Utility bills incurred on account. $67.000 (95% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct labor (1,275 hours) Indirect labor Selling and administrative salaries $ 270,eee $ 98,eee $ 150,eee e. Maintenance costs Incurred on account in the factory. $62000 f. Advertising costs incurred on account, $144,000. 9. Depreciation was recorded for the year, $80,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account. $105.000 (90% 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. $850.000. k Sales for the year (all on account) totaled $1.600.000. These goods cost $880.000 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 $ 38,eee $ 29,eee $ 68,eee 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. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Reg 43 Reg 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction at Journal entry worksheet Complete this question by entering your answers in the tabs below. R2 RA R40 Regs Bales Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Debet Credit Debit Beginning Balance Beginning Balance Credit Ending Bulacan Ending salar Raw Matering Coct of Goods Bold Credit Credit Debat Beginning Balance Debit Beginning Balance Ending Balance Ending Balaan Work In Process Manufacturing Overhead Credit Credit Debet Beginning Balance Debit Beginning Balance Ending Blonde Ending Balance Finished Goods Advertising Expence Credit Credit Debe Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Ulities Expense Aboumulated Dapreolation Debit Beginning Balance Credit Credit Debit Beginning Balance Ending Balance Ending Balance Accounts Payable Balaries Expanse Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Deprecation Expanse Credit Balaries & wages Payable Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Rent Expenso Credit Debit Beginning Balance Ending Botone Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Reg 4B Reg 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured Reg 1 Reg 2 Reg 3 Reg 4A Req 4B Reg 5 Prepare a journal entry to close any balance in the Manufacturing Overhead account to 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 lit 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. General Journal Debit Credit Transaction 1 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 40 Reg 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Req 40 Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended Seling and administrative expenses
