Nee an explanation please.
Work in Process Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. End. Bal. Finished Goods Advertising Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal.\fDepreciation Expense Salaries & Wages Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Rent Expense Beg. Bal. End. Bal.Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Raw Materials Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal.Froya Fabrikker N5 of Bergen, Nonivay, is a small company that manufactures specialty heavy equipment for use in North Sea oil elds. 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, $50,000 [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} $235,000 Indirect labor $ 91,000 Selling and administrative salaries $ 115.000 e. Maintenance costs incurred on account in the factory, $55,000 f. Advertising costs incurred on account, $137,000. g. 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]. 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 theirjob cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials 5 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 ajournal entry to close any balance in the Manufacturing Overhead account to lCost of Goods Sold. 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year
