Froya Fabrikker NS 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 $370,500 of manufacturing overhead for an estimated allocation base of 950 direct labor hours. The following transactions took place during the year Raw materials purchased on account. $270,000 b Raw materials used in production (all direct materials) $255,000 c. Utility bills incurred on account, $73,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,030 hours) Indirect labor Selling and administrative salaries $300,000 $ 104,800 $ 180,00 e. Maintenance costs incurred on account in the factory, $68,000 Advertising costs incurred on account, $150,000, 9 Depreciation was recorded for the year, $86,000 (75% related to factory equipment and the remainder related to selling and h Rental cost incurred on account, $11.000 (80% related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, S Cost of goods manufactured for the year. $910,000 k Sales for the year fall on account) totaled $1,900.000. These goods cost $940,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: materials Work In Process Finished bode $ 44,000 $ 35,000 $ 74,000 Required: 1 Prepare journal entries to record the preceding transactions. Post your eetles to T-accounts. Don't forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods manufactured Prev 2 of 2 Nem 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 R3 Req 4A Req 4B Reg 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Materials used in production Total manufacturing costs 0 Cast of goods manufactured Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Pleq 40 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 a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Secord entry Clear entry View general journal B ROLL
