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 $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $230,000. b. Raw materials used in production (all direct materials), $215,000. c. Utility bills incurred on account, $65,000 (85% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,135 hours) Indirect labor Selling and administrative salaries $ 260,000 $ 96,000 $ 140,000 e. Maintenance costs incurred on account in the factory, $60,000 f. Advertising costs incurred on account, $142,000. g. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $115,000 (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, $830,000. k. Sales for the year (all on account) totaled $1,500,000. These goods cost $860,000 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 $ 36,000 $ 27,000 $ 66,000 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. 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. Reg 1 Reg 2 Reg 3 Reg 4A Req 4B Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select required" in the first account field.) View transaction list Journal entry worksheet R4A R5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Bog. Bal. Beg Ba End. Bal End. Bal Raw Material Cost of Good Sold Bog, Bali Beg Ba End. Bal End. Bal Work in Prooss Manufacturing Overhand Bog Bal Beg . End. Bei End. Bei Finished Goods Advertising Expence Bog. Bal Bog. Bei End. Bei End. Bal Adoumulated Dapreolation Utic Expance Bog. Bei Beg Bal End. Bal End. Bal Accounts Payable Salaries Expance Beg Bali Bog Bal End. Bol End. Bal Depreciation Expanca Balaries & Wages Payable Beg Bali Bog. Bal End. Bei End. Bei Rant Expense Bog Bal End. Bal Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Materials used in production Total manufacturing costs Cost of goods manufactured Reg 1 Reg 2 Req3 Req 4A Req 4B Reg 5 epare a journal entry to close any balance in the Manufacturing Overhead account to cost of Goods So ansaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Req 4B Reg 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Req 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended Selling and administrative expenses: