Froya Fabrikker ASS 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 laborhours. its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1,100 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bilis incurred on account, $66,000 ( 90% related to factory operations, and the remainder related to selling and administrative activities), d. Accruedsalary and wage costs: e. Maintenance costs incurred on account in the factory, $61,000 t. Advertising costs incurred on occount, $143,000. 9. Depreciation was recorded for the year, $91,000 (80\%, reloted to factory equipment, and the remainder related to selling and administrative equipment. h. Rental cost incurred on account, $1,000(85% related to factory facilities, and the remainder reiated to selling and administrative facilities). 1. Manufacturing overhead cost was opplied to jobs, 5 ? 1. Cost of goods manufactured for the year, $840,000. K. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets. 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 joumal 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 yeaf. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No jour required" in the first account field.) Journal entry worksheet The raw materiais were purchased for use in production, $235,000 on account. Note: Enter debits before credits. Prepare a schedule of cost of goods rianufactured. Prepare a journal entry to close any balance in twe Manufacturing Overhead account to Cost of Goods Sold. (If no entry is require transaction/event, select "No journal entry required" in the first account fleld.) Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debats before crndits. Prepare a schedule of cost of goods sold. Prepare an income statement for the year. Froya Fabrikker ASS 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 laborhours. its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1,100 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bilis incurred on account, $66,000 ( 90% related to factory operations, and the remainder related to selling and administrative activities), d. Accruedsalary and wage costs: e. Maintenance costs incurred on account in the factory, $61,000 t. Advertising costs incurred on occount, $143,000. 9. Depreciation was recorded for the year, $91,000 (80\%, reloted to factory equipment, and the remainder related to selling and administrative equipment. h. Rental cost incurred on account, $1,000(85% related to factory facilities, and the remainder reiated to selling and administrative facilities). 1. Manufacturing overhead cost was opplied to jobs, 5 ? 1. Cost of goods manufactured for the year, $840,000. K. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets. 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 joumal 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 yeaf. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No jour required" in the first account field.) Journal entry worksheet The raw materiais were purchased for use in production, $235,000 on account. Note: Enter debits before credits. Prepare a schedule of cost of goods rianufactured. Prepare a journal entry to close any balance in twe Manufacturing Overhead account to Cost of Goods Sold. (If no entry is require transaction/event, select "No journal entry required" in the first account fleld.) Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debats before crndits. Prepare a schedule of cost of goods sold. Prepare an income statement for the year
