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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 $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $220,000. b. Raw materials used in production (all direct materials), $205,000 c. Utility bills incurred on account, $63,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct labor (1,075 hours) Indirect labor Selling and administrative salaries $ 250,000 $ 94,000 $ 130,000 e Maintenance costs incurred on account in the factory, $58.000 f. Advertising costs incurred on account, $140,000 9. Depreciation was recorded for the year. $88,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $113,000 (90% related to factory facilities, and the remainder related to selling and administrative facilities) 1. Manufacturing overhead cost was applied to jobs, $? J. Cost of goods manufactured for the year, $810,000 k Sales for the year (all on account) totaled $1,400,000. These goods cost $840,000 according to their job cost sheets. The balonces in the inventory accounts at the beginning of the year were: Raw Materials Work in PrOCO Tinished Goods $ 34,000 $ 25,000 $ 64,000 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. ok Complete this question by entering your answers in the tabs below. ences Reg 1 Reg 2 Req3 Reg 4A Req 48 Reg 5 Post your entries to accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Sales Beg Bal Beg Bat End. Bal End Bal Raw Materials Cost of Goods Sold Beg Bail Beg Bal End. Bai. End. Bal End. Bal. Raw Materials Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal End. Bal. Work in Process Manufacturing Overhead Beg Bal Beg. Bal End. Bal End. Bal Finished Goods Advertising Expense Beg Bal Bog, Bal End. Bal End. Bal Accumulated Depreciation Utilities Expense Beg Bal Beg Bal End. Bal. End. Bal Accounts Payable Salaries Expense Beg Bal Beg. Bal. 5 End. Bal End. Bal Depreciation Expense Salaries & Wages Payable Beg Bat Beg Bal End, Bal End, Bal Rent Expense Beg Bal Req 1 Req 2 Req3 Req 4A Req 4B Reg 5 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 0 Cost of goods manufactured Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. s Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general Journal Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Froya Fabrikker A/S Income Statement For the Year Ended 0 5 Selling and administrative expenses: 0 0 Debit No Credit General Journal Transaction 1 220,000 a. Raw materials Accounts payable 220,000 2 b. 205,000 Work in process Raw materials OO 205,000 3 Manufacturing overhead Utilities expense Accounts payable OOO 56,700 6,300 63,000 4 d Work in process Manufacturing overhead Salaries expense Salaries and wages payable OOOO 250,000 94,000 130,000 474.000 5 58,000 Manufacturing overhead Accounts payable 58,000 6 . 140.000 Advertising expense Accounts payable ols 140,000 7 9 Manufacturing overhead Depreciation expense Accumulated depreciation OOO 74.800 13.200 88.000 8 h Manufacturing overhead Rent expense Accounts payable ololo 101,700 11,300 113.000 9 Work in process Manufacturing overhead ol 408,500 408,500 10 Finished goods Work in process 810.000 010 810,000 11 (1) Accounts receivable Sales 1.400.000 1.400.000 12 k(2) Cost of goods sold Finished goods 840.000 Blo 840.000