I'm second guessing myself for some reason. Can you do me a favor and just go over my work? I should be keeping all debits first or can I do it like this?
3 Graded Homework Saved Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] 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 $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $255,000. b. Raw materials used in production (all direct materials), $240,000. c. Utility bills incurred on account, $70,000 (95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: ces Direct labor (1,085 hours) Indirect labor Selling and administrative salaries $ 285,000 $ 101,000 $ 165,000 e. Maintenance costs incurred on account in the factory, $65,000 f. Advertising costs incurred on account, $147,000. g. Depreciation was recorded for the year, $83,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $108,000 (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, $880,000. k. Sales for the year (all on account) totaled $1,750,000. These goods cost $910,000 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 Required: $ 41,000 $ 32,000 $ 71,000 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. 4B. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. View transaction list Journal entry worksheet The utility bills were incurred on account, $70,000 (95% related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. Transaction General Journal Debit Credit C. Utilities expense 70,000 Manufacturing overhead 66,500 Accounts payable 66,500 View transaction list Journal entry worksheet The depreciation was recorded for the year, $83,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). Note: Enter debits before credits. Transaction 9- General Journal Manufacturing overhead Depreciation expense Accumulated depreciation Debit Credit 83,000 83,000 66,400 66.400 Record entry Clear entry View general journal View transaction list Journal entry worksheet 5 6 7 8 The entry for rental cost incurred on account on buildings, $108,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). Note: Enter debits before credits. 7 12 Transaction General Journal Debit Credit Transaction h. d. Work in process 551,000 Manufacturing overhead 551,000 General Journal Manufacturing overhead Rent expense Accounts payable Debit Credit 108,000 108,000 91,800 Salaries expense 285,000 Salaries and wages payable 285,000 Record entry Clear entry View general journal Record entry Clear entry View general journal
