vestr Check my work Problem 3-15 Journal Entries; T-Accounts; Financial Statements (L03-1, L03-2, L03-3, L03-4) Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea o fields. The company uses a job-order costing system that apples manufacturing overhead cost to jobs on the basis of direct labor hours. Its predetermined overhead rate was based on a cost formula that estimated $351500 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account $215,000 b. Raw materials used in production (all direct materials). $200,000 celny bills incurred on account, $62,000 (85% related to factory operations, and the remainder related to selling and administratie activities) d. Accrued salary and wage costs Direct labor (1,025 hours Indirect labor Selling and administrative salaries $ 245,000 $93,000 $ 125,000 e. Maintenance costs incurred on account in the factory, $57.000 + Advertising costs incurred on account. $139,000 9 Depreciation was recorded for the year, $87.000 (80% related to factory equipment and the remainder related to selling and administrative equipment). h Rental cost incurred on account, $112.000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, $ 2 1 Cost of goods manufactured for the year, $800,000 k Sales for the year (all on account) totaled $1,350,000. These goods cost $830,000 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 $ 33,000 $ 24,000 $63,000 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. 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year