Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froys Fabrikker A/S of Bergen, Norway, is a small company that manufactures speciaity 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 laborhours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: 3. Raw materials purchased on account, $240,000. b. Raw materials used in production (all direct materials), $225,000. c. Utiaty bills incurred on account, $67,000(95% related to foctory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs e. Maintenance costs incurred on account in the factory, $62,000 t. Advertising costs incurred on account, $144,000 9. Depreciation was recorded for the year, $80,000185% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $105,000(90% related to factory fochities, and the remainder related to selling ond administrotive (acilites) 1. Manufactuing overhead cost was applied to jobs. $ ? 1. Cost of goods manufactured for the year, $850,000 k. Salos for the year (ali on aceount) totalod $1,600,000. These goods cost $880,000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were: 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 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. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year. required" in the first account field.) Journal entry worksheet The raw materials were purchased for use in production, $240,000 on account. Note Enter debuts before credits required" in the first account field.) Journal entry worksheet 45678 The raw materials used in production (ail direct materiais), $225,000. Note: Enter debits before credits: Journal entry worksheet The utility bils were incurred on account, $67,000 (95\% related to factory operations, and the remainder related to selling and administrative activities). Wote Enter debits befone credits. required" in the first acoount field.) Journal entry worksheet fiote: Enter depbits before cred tol Journal entry worksheet 4 2 The maintenance costs were Incurred on account in the factory, $62,000. The 3 m Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet The advertising costs were incurred on account, $144,000. Notes Enter debits tyefore credits. Journal entry worksheet The depreciation was recorded for the year, $80,000 ( 85% related to factory equipment, and the remainder related to selling and administrative equipment). Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet The entry for manufacturing overhead cost applied to jobs. Notel Enter debits before credits. required" in the first account field.) Journal entry worksheet The cost of goods manufactured for the year, $850,000. Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet 6 7 8 9 10 12 The sales for the year (all on account) totaled $1,600,000. Note: Enter debits before credits. required" in the first account field.) Journal entry worksheet
