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 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 $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 materials) $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: Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. g. 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 facilities, and the remainder related to selling and administrative facilities) Manufacturinn overheart rnst was annliori tn inhs ? TOLHES). 5 I. Manufacturing overhead cost was applied to jobs, $_? J. 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: Raw Materials Work in Process Finished Goods $30,000 $ 21,000 $ 60,000 Book rences 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. 48. 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 3 Reg 4 Reg 48 Reg 5 Reg 2 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Ante Raraluable w !!! Post your entries to I-accounts. (Dont forget to enter the beginning inventory balances above.) Accounts Receivable Sales Beg. Bal. + Bog. Bat. End. Bal. End. Bal 25:38 Cost of Goods Sold Raw Materials 30.000 200,000 Beg. Bal a. Beg. Bal 185,000 800,000 ences End. Bal 800,000 End. Bal. 45.000 Manufacturing Overhead Work in Process 21,000 Beg Bal Beg Bal End. Bal 21,000 End Bal Finished Goods Advertising Expense Beg. Bal. 60,000 Beg. Bal. f. 136,000 End. Bal. 136,000 End. Bal. 60.000 24 Accumulated Depreciation Utilities Expense Beg. Bal Beg. Bal 19 95,000 End. Bal 95,000 End. Bal Accounts Payable Salaries Expense Beg. Bal. Beg Bal End. Be End. Bal (Prey 6 of 7 BI Next > 03 Exercises & Problems i Saved Help End. Bal. Depreciation Expense Salaries & Wages Payable Beg. Bal. Beg. Bal d. g. 25:07 d. End. Bal. End. Bal. mt Rent Expense Beg. Bal. ances End. Bal. 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 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 $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 materials) $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: Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. g. 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 facilities, and the remainder related to selling and administrative facilities) Manufacturinn overheart rnst was annliori tn inhs ? TOLHES). 5 I. Manufacturing overhead cost was applied to jobs, $_? J. 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: Raw Materials Work in Process Finished Goods $30,000 $ 21,000 $ 60,000 Book rences 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. 48. 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 3 Reg 4 Reg 48 Reg 5 Reg 2 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Ante Raraluable w !!! Post your entries to I-accounts. (Dont forget to enter the beginning inventory balances above.) Accounts Receivable Sales Beg. Bal. + Bog. Bat. End. Bal. End. Bal 25:38 Cost of Goods Sold Raw Materials 30.000 200,000 Beg. Bal a. Beg. Bal 185,000 800,000 ences End. Bal 800,000 End. Bal. 45.000 Manufacturing Overhead Work in Process 21,000 Beg Bal Beg Bal End. Bal 21,000 End Bal Finished Goods Advertising Expense Beg. Bal. 60,000 Beg. Bal. f. 136,000 End. Bal. 136,000 End. Bal. 60.000 24 Accumulated Depreciation Utilities Expense Beg. Bal Beg. Bal 19 95,000 End. Bal 95,000 End. Bal Accounts Payable Salaries Expense Beg. Bal. Beg Bal End. Be End. Bal (Prey 6 of 7 BI Next > 03 Exercises & Problems i Saved Help End. Bal. Depreciation Expense Salaries & Wages Payable Beg. Bal. Beg. Bal d. g. 25:07 d. End. Bal. End. Bal. mt Rent Expense Beg. Bal. ances End. Bal.