Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures speciaity 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 $351,500 of manufacturing overhead for an estimated allocation base of 950 direct labor hours. The following transactions took place during the year. a. Raw matetials purchased on account, $215,000 b. Raw materials used in production (all direct materials), $200,000 c. Utility bills incurred on account, $62,000 (85\% 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, $57,000 1. Advertising costs incurred on account, $139,000 9. Depreciation was recorded for the year, $87,000(805 related to factory equipment and the remainder related to selling and administrative equipment) h. Rental cost incurred on occount $112000(85% related to tactory facilites, and the remainder related to selling and administrative facilities) 1. Manufacturing overbead cost was applied to jobs. \$? ? C Cost of goods manufactured for the year. $800,000 k. Sales for the year (all on accoung totaled $1,350,000. These goods cost $830.000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were Required: 1. Prepare joumal entries to record the preceding transactions 2. Postyour entries to T-accounts. (Dont forget to enter the begnning inventory bolances 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. Prepore a schedule of cont of goods sold 5. Piepare an income statement for the yeat. Complete this question by entering your answers in the tabs below. The raw materials were purchased for use in production, $215,000 on account. Note: Enter debits before credits. Journal entry worksheet $200,000. Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet 4567812 The utility bills were incurred on account, $62,000 ( 85% related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select required" in the first account field.) Journal entry worksheet The salary and wage costs accrued were $245,000 (Direct labor), $93,000 (Indirect labor), $125,000 (Selling and administrative salaries). Note: Enter debits before credits. repare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, sel equired" in the first account field.) Journal entry worksheet The maintenance costs were incurred on account in the factory, $57,000. Note: Enter debits before credits. Journal entry worksheet The advertising costs were incurred on account, $139,000. Note: Enter debits before credits. Journal entry worksheet The depreciation was recorded for the year, $87,000(80% related to factory equipment, and the remainder related to selling and administrative equipment). Note: Enter debits before credits. Prepare joumal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No jou required" in the first account field.) Journal entry worksheet The entry for rental cost incurred on account on buildings, $112,000 ( 85% related to factory facilities, and the remainder related to selling and administrative facilities). Note: Enter debits before credits. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No required" in the first account field.) Journal entry worksheet The entry for manufacturing overhead cost applied to jobs. Note: Enter debits before credits. 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.) Journal entry worksheet Note: Enter debits before credits. Prepare journal entries to record the preceding transactions. (If no entry is required for d required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet
