Problem 3-15 Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, 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 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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $260,000. b. Raw materials used in production (all direct materials). $245,000. c Utility bills incurred on account, $71,000 (80% related to factory operations, and the remainder related to selling and administrativ activities) d. Accrued salary and wage costs: Direct labor (1,895 hours) Indirect labor Selling and administrative salaries $ 290,000 $ 102,000 $ 170,000 Prey 1 of 1 Next > arch ! JOVE & Exit Submit Check my work e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $109,000 (80% 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, $890,000 k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods $ 42,000 $ 33,eee $ 72,000 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. Prey 1 of 1 Next > Check my work Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Beg. Bal. Sales Beg. Bal. End. Bal. End. Bal. Raw Materials Cost of Goods Sold Beg. Bal. Beg. Bal. End, Bal End. Bal Work in Process Manufacturing Overhead Beg. Bal. Beg. Bal. Prey 1 of 1 !!! Next earch 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. Accumulated Depreciation Utilities Expense Prey 1 of 1 Next earch 7:00 PM 9/5/2019 Accumulated Depreciation Utilities Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Depreciation Expense Salaries & Wages Payable Prey 1 of 1 Next search 7:01 PM 9/5/2019 Check my work Depreciation Expense Salaries & Wages Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Rent Expense Beg Bal... End. Bal. Prey 1 of 1 * Next > E LO 9 52% 7:01 PM 9/5/2019 Problem 3-15 Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, 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 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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $260,000. b. Raw materials used in production (all direct materials). $245,000. c Utility bills incurred on account, $71,000 (80% related to factory operations, and the remainder related to selling and administrativ activities) d. Accrued salary and wage costs: Direct labor (1,895 hours) Indirect labor Selling and administrative salaries $ 290,000 $ 102,000 $ 170,000 Prey 1 of 1 Next > arch ! JOVE & Exit Submit Check my work e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $109,000 (80% 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, $890,000 k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods $ 42,000 $ 33,eee $ 72,000 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. Prey 1 of 1 Next > Check my work Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Beg. Bal. Sales Beg. Bal. End. Bal. End. Bal. Raw Materials Cost of Goods Sold Beg. Bal. Beg. Bal. End, Bal End. Bal Work in Process Manufacturing Overhead Beg. Bal. Beg. Bal. Prey 1 of 1 !!! Next earch 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. Accumulated Depreciation Utilities Expense Prey 1 of 1 Next earch 7:00 PM 9/5/2019 Accumulated Depreciation Utilities Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Depreciation Expense Salaries & Wages Payable Prey 1 of 1 Next search 7:01 PM 9/5/2019 Check my work Depreciation Expense Salaries & Wages Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Rent Expense Beg Bal... End. Bal. Prey 1 of 1 * Next > E LO 9 52% 7:01 PM 9/5/2019