Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Ses 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 $.235,000 591,000 $115,000 e. Maintenance costs incurred on account in the factory, $55,000 1. Advertising costs incurred on account, $137,000 9. 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) Manufacturing overhead cost was applied to jobs. $_2_ 1. Cost of goods manufactured for the year. 5780,000 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: Law Materials Work in Process Tanished Goods $31.000 $ 22,000 $61,000 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 32 The balances in the inventory accounts at the beginning of the year were: Raw Materials $ 31,000 Work in Process $ 22.000 Finished Goods $ 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. 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year, 05 Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Reg 3 Reg 4 Reg 48 Reg 5 Prepare journal entries to record the preceding transactions, no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction et View journal entry worksheet
