Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements (LO3-1, LC3-2, 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 oll fields. The company uses a job order costing system that applies manufacturing overhead cost to jobs on the basis of direct lobor hours. Its predetermined overhead rate was based on a cost formula that estimated $336,000 of manufacturing overhead for on estimated allocation base of 1,050 direct lobor-hours. The following transactions took place during the year, . D. Raw materials purchased on account, $245,000 b. Raw materials used in production (all direct materials). $230,000. c. Utility bills incurred on account, $68,000 (85% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct Tabor (1,125 hours Indirect labor Selling and administrative salaries $ 275,000 699,000 $ 155,000 c. Mointenance costs incurred on account in the factory, $63,000 1. Advertising costs incurred on account, $145,000 9 Depreciation was recorded for the year, $81,000 (70% related to factory equipment, and the remainder rolated to selling and administrative equipment) n. Rental cost incurred on account. $106,000 (75% related to factory focilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs. $? J. Cost of goods manufactured for the year, $860,000 D Nav 1 h. Rental cost incurred on account, $106.000 (75% related to factory focilities, 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, $860,000. k. Sales for the year (all on account) totaled $1650,000. These goods cost $890,000 according to their job cost sheets 12 points The balances in the inventory accounts at the beginning of the year were: BOOK References How Materiais Work In Process Finished Goods 39,000 $ 30,000 Required: 1. Prepare journal entries to record the precediny transactions 2. Post your entries to T-accounts. (Don't forget to enter the beginning inventory balonces above) 3. Prepare a schedule of cost of goods manufactured, A. 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 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Reg 4 Reg 4 Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S 1 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 12 points eBook 0 References Selling and administrative expenses: 0 $ 0 Req 48 RO