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, 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 based on direct labor hours Its predetermined overhead rate was based on a cost formula that estimated $351,500 of manufacturing overhead for an estimated allocation base of 950 direct labor hours The following transactions occurred during the year Raw materials purchased on account, $215,000 Raw materials used in production (all direct materials), $200,000 Utility bills incurred on account, $62,000 (85 related to factory operations, and the remainder related to selling and administrative activities) Accrued salary and wage costs Direct labor (1,025 hours)$ 245,000Indirect labor$ 93,000Selling and administrative salaries$ 125,000 Maintenance costs incurred on account in the factory, $57,000 Advertising costs incurred on account, $139,000 Depreciation recorded for the year, $87,000 (80 related to factory equipment, and the remainder related to selling and administrative equipment) Rental cost incurred on account, $112,000 (85 related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost applied to jobs, $ question mark Cost of goods manufactured, $800,000 Sales for the year (all on account) totaled $1,350,000 These goods cost $830,000 according to their job cost sheets The beginning balances in the inventory accounts were Raw Materials$ 33,000Work in Process$ 24,000Finished Goods$ 63,000 Required 1 Prepare journal entries to record the preceding transactions 2 Post your entries to T accounts (Dont 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 these are correct Prepare a schedule of cost of goods manufactured Complete this question by entering your answers in the tabs below Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Notes If no entry is required for a transaction event, select No journal entry required in the first ac 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 Complete this question by entering your answers in the tabs below Prepare journal entries to record the preceding transactions Notes If no entry is required for a transaction event, select No journal entry required in the first account field

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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, manufactures specialty heavy equipment for use in

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, 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 based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $351,500 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions occurred during the year:

Raw materials purchased on account, $215,000.
Raw materials used in production (all direct materials), $200,000.
Utility bills incurred on account, $62,000 (85% related to factory operations, and the remainder related to selling and administrative activities).
Accrued salary and wage costs

Direct labor (1,025 hours)$ 245,000Indirect labor$ 93,000Selling and administrative salaries$ 125,000

Maintenance costs incurred on account in the factory, $57,000
Advertising costs incurred on account, $139,000.
Depreciation recorded for the year, $87,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
Rental cost incurred on account, $112,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities).
Manufacturing overhead cost applied to jobs, $____?question mark.
Cost of goods manufactured, $800,000.
Sales for the year (all on account) totaled $1,350,000. These goods cost $830,000 according to their job cost sheets.

The beginning balances in the inventory accounts were:

Raw Materials$ 33,000Work in Process$ 24,000Finished Goods$ 63,000

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Dont 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.

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Prepare a schedule of cost of goods manufactured. Complete this question by entering your answers in the tabs below. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Notes: If no entry is required for a transaction/event, select "No journal entry required" in the first ac 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. Complete this question by entering your answers in the tabs below. Prepare journal entries to record the preceding transactions. Notes: If no entry is required for a transaction/event, select "No journal entry required" in the first account field