Problem 3-15 (Static) 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 oll 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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $200.000. b. Raw materials used in production (all direct materlals), $185,000. c. Utility bills incurred on account. $70,000 (90\% related to factory 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, $54,000. t. Advertising costs incurred on account, $136,000. 9. Depreciation was recorded for the year, $95,000 ( 80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000(85% related to factory faclities, and the remainder related to selling and administrative facilities). t. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $770,000. k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 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 joumal 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. required" in the first account field.) Complete this question by entering your answors in the tabs below. Pait yis entrios to T-actourts. (Dent forget io erder the beginnicy invertary balanom above.) e. Maintenance costs incurred on account in the factory. $54,000 t. Advertising costs incurred on account, $136,000. 9. Depreciation was recorded for the year, $95,000 ( 80% related to factory equipment, and the remainder refated to selling and administrative equipment) h. Remtal cost incurred on account, $120.000(85% related to factory focilies, and the remainder related to selling and administ facilities). 1. Monufacturing overhead cost was applied to jobs: C Cost of goods manufactured for the year, $770,000 k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to their Job cost sheets. The balances in the inventory accounts at the beginning of the year were: Required: 1. Prepare joumal entries to record the preceding transactions. 2. Post your entries to T-occounts. (Don' forget to enter the beginning inventory balances above.) 3. Prepare a schedule of cost of goods manufactured 4A. Prepare a journal entry to close ony 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 a schedule of cost of goods manufactured. e. Maintenance costs incurred on account in the factory, $54,000 f. Advertising costs incurred on occount, $136,000 9. Depreciation was recorded for the year, $95,000(80% related to factory equipment, and the remainder related to selling and odministrative equipment) h. Rentol cost incurred on account, $120,000(85% related to foctory focilities, and the remainder related to selling and administrative facilities). L. Manufocturing overheod cost was applied to jobs, $ ? I Cost of goods manufactured for the year, $770,000 k. Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cont sheets, The bolances in the inventory accounts of 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. Prepore a thedule of cost of goods manufactured. 4A. Prepare a joumal 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 staternent for the yeor Complete this question by entering your answers in the tabs below. Prepare a journal entry to dose any balance in the Manufacturing overhead account to Cost of Goods Sold. (If no entry is required for a transaction/event, select - No journal entoy required in the first acoount field.) Required: 1. Prepore journal entries to record the preceding transactions. 2 Post your enthes to T-accounts (Don't forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods manufactured AA. Prepare a joumal entry to close any bolonce in the Manufocturing Overhead account to Cost of Goods Sold 48. Prepare a schedule of cost of goods sold 5. Prepore an income statement for the year. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods sold. Prepare journal entries to record the preceding transactions. . Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above)) Prepare a schedule of cost of goods manufactured. A. Prepare a joumal 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