Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, L03-4) 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 $336,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year ances a. Raw materials purchased on account, $245,000 b. Row 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 d. Accrued salary and wage costs: activities) Direct labor (2,125 hours) Indirect labor Selling and administrative salaries $275,000 $ 99,000 $ 155,000 e. Maintenance costs incurred on account in the factory, $63,000 Advertising costs incurred on account. $145,000 9. Depreciation was recorded for the year. $81,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $106,000 (75% related to factory facilities, and the remainder related to selling and administrativo facilities) 1. Manufacturing overhead cost was applied to jobs, $ ? J. Cost of goods manufactured for the year $860,000. Prev 1 of 1 !! Next L. 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 $1,650,000. These goods cost $890,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materiais Work in Process Finished Goods 39,000 $30,000 $69,000 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 4. 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. Reg1 Reg2 Reg Red A Reqs Rego Prepare journal entries to record the preceding transactions. (Ir no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction is De 1 of Next Journal entry worksheet Book 12 .. es The utility bills were incurred on account, $68,000 (85% related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. Transaction General Journal Dobit Credit C Record entry Clear entry View general journal required in the first account hela.) View transaction list Journal entry worksheet 2 3 5 6 7 8 12 The salary and wage costs accrued were $275,000 (Direct labor), $99,000 (Indirect labor), $155,000 (Selling and administrative salaries). Note: Enter debits before credits Transaction Goneral Journal Debit Credit d. Record entry Clear entry View general Journal Journal entry Book 3 4 2 6 7 12 . rences The maintenance costs were incurred on account in the factory, $63,000. Note: Enter debits before credits. Debit Goneral Journal Transaction Credit Record entry Clear entry View general journal Journal entry worksheet ook 12 10 6 00 1 .... 5 The entry for manufacturing overhead cost applied to jobs. Note: Enter debits before credits. Dobit Credit General Journal Transaction 1. Record entry Clear entry View general journal NAR Journal entry worksheet 9 11 12 7 8 Prev 1 of 1 Next Journal entry worksheet Froya Fabrikker A/S Income Statement For the Year Ended Selling and administrative expenses: ces
