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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $200,000. b. Raw materials used in production (all direct materials). $185,000. c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to seling and administrative activities) d. Accrued salary and wage costs: Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. g. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 (85% 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, $770,000. k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 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 $30,000 $ 21,000 $ 60,000 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 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: Beginning raw materials inventory 30,000 Add: Purchases of raw materials 200,000 Total raw materials available 230,000 Less: Ending raw materials inventory 45,000 Materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing cost Add: Beginning work in process inventory $ 185,000 230,000 21,000 21,000 Less: Ending work in process inventory Cost of goods manufactured $ 770,000 Reg 1 Req 2 Reg 3 Req 4A Reg 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 transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Req 4A Reg 4B Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses: 0 $ 0
