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 $329,000 of manufacturing overhead for an estimated allocation base of 940 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $205,000. b. Raw materials used in production (all direct materials), $190,000. c. Utility bills incurred on account, $60,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,015 hours) Indirect labor Selling and administrative salaries $ 235,000 $ 91,000 $ 115,000 e. Maintenance costs incurred on account in the factory, $55,000 f. Advertising costs incurred on account, $137,000. g. Depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $110,000 (75% 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, $780,000. k. Sales for the year (all on account) totaled $1,250,000. These goods cost $810,000 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 $ 31,000 $ 22,000 $ 61,000 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. Reg 1 Reg 2 Req3 Reg 4A Req 4B Req5 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 list 1 ine raw materials were purchased for use in production, $ 205,000 on account. 12 > account. 2 The raw materials used in production (all direct materials), $190,000. 3 The utility bills were incurred on account, $60,000 (90% related to factory operations, and the remainder related to selling and administrative activities). 4 The salary and wage costs accrued were $235,000 (Direct labor), $91,000 (Indirect labor), $115,000 (Selling and administrative salaries). Credit 5 The maintenance costs were incurred on account in the factory, $55,000. Note : = journal entry has been entered Record entry Clear entry View general journal 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 Req 2 Reg 3 Reg 4A Reg 4B 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 list 6 The advertising costs were incurred on account, $137,000. 12 > account. 7 The depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). 8 The entry for rental cost incurred on account on buildings, $110,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). Credit 9 The entry for manufacturing overhead cost applied to jobs. 10 The cost of goods manufactured for the year, $780,000. = journal entry has been entered Note : Record entry Clear entry View general journal facilities). 9 The entry for manufacturing overhead cost applied to jobs. 10 The cost of goods manufactured for the year, $780,000. Credit 11 The sales for the year (all on account) totaled $1,250,000 12 The goods cost $810,000 according to their job cost sheets. Note : = journal entry has been entered Complete this question by entering your answers in the tabs below. Reg Req 5 Reg 1 Req 2 Reg 3 Req Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Beg Sales Beg Bal Bal End. Bal. End Bal Raw Materials Beg Bal. Cost of Goods Sold Beg. Bal. End. Bal. End. Bal. Work in Process Beg Bal. Manufacturing Overhead Beg Bal End. Bal End Bal Finished Goods Advertising Expense Beg Bal. Beg Bal. End. Bal. End Bal Utilities Expense Accumulated Depreciation Beg Bal. Beg Bal End Bal End. Bal. 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 Req 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 Materials used in production Total manufacturing costs Cost of goods manufactured 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 Req4B Req5 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 list Journal entry worksheet 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. 43. 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 Req 4B Reg 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold 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 Req 4B Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended Selling and administrative expenses