Froya Fabrikker AS 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 laborhours. Its predetermined overhead rate was based on a cost formula that estimated $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $275,000. b. Raw materials used in production (all direct materials). $260,000. c. Uuility bills incurred on account, $74.000 (95\% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: e. Maintenance costs incurred on account in the factory, $69,000 1. Advertising costs incurred on account, $151,000. 9. Depreciation was recorded for the year, $87,000(80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $112,000(85% related to factory facilities, and the remainder related to selling and administrative facititest: 1. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $920,000. k. Sales tor the year (all on account) totaled $1,950,000. These goods cost $950,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: 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 joumal 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. 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.) Journal entry worksheet 5678,12 The raw materials were purchased for use in production, $275,000 on account. Notet Enter debits before credits. Complete this question by entering your answers in the tabs below. Post your entries to Traccounts. (Donk forget to enter the beginning inventory balances above; Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured. Complete this question by entering your answers in the tabs below. Prepare a journal entry to close any balance in the Manufacturing Overhiead 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.) 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: 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. Prepare a schedule of cost of goods sold. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year
