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 $357000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $260,000. b. Raw materials used in production (all direct materials). $245,000. c. Utility bills incurred on account, $71,000 (80 % related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,095 hours) Indirect labor Selling and administrative salaries $ 290,000 $ 102,000 $ 170,000 es e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000, g Depreciation was recorded for the year, $84,000 (75 % related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $109,.000 (80 % 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, $890,000. k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were $ 42,000 $ 33,000 $ 72.000 Raw Materials Work in Process Finished Goods n-uleed Req 2 Req 1 Req 3 Req 4A Req 4B Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal required" in the first account field.) View transaction list Book Journal entry worksheet Print 2 3 4. 5 6 7 8 12 ferences The raw materials were purchased for use in production, $260,000 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Rea 2 Mc Graw Prev 4 nf 4 Mov 35,0de work in rocess $ 72,000 Finished Goods 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 points sflonk Complete this question by entering your answers in the tabs below. Print Reg 5 Rea 48 Reg 3 Rea 44 Reg 2 Reg 1 Reterences Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials Total raw maberials available Materials used in production Total manufacturing costs Cost of goods manufactured
