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Problem 3-15 (Algo) 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 speclalty heavy equipment for use in North Seo ofl fields. The company uses a job-order costung system that appiles manufacturing overhead cost to jobs on the basis of direct laborhours. Its predetermined overhead rate was based on a cost formula that estimated $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year: a. Raw materlals purchased on account, $255,000 b. Raw materials used in production (all direct matenais), $240,000. c. Utility bills incurred on account, $70,000 (95\% related to factory operations, and the remainder related to seling and administravve activites) d. Accrued salary and woge costs: e. Maintenance costs incurred on account in the factory, $65,000 t. Advertising costs incurred on account, $147,000. 9. Depreclation was recorded for the year, $83,000(80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $108,000(85% related to factory facilities, and the remainder related to seling and administrative facilities). 1. Manufacturing overhead cost was applled to jobs, \$ ? j. Cost of goods manufactured for the year, $880,000 k. Sales for the year (all on account) totaled $1,750,000. These goods cost $910,000 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 transactuons 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