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252Fluonline blackboard.com/252Farba a Credit 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 $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year, a. Raw materials purchased on account. $290,000 b. Raw materials used in production (all direct materials). $275,000 c. Utility bills incurred on account. $77,000 (90% related to factory operations, and the remainder related to selling and administrat activities). d. Accrued salary and wage costs. Direct labor 1970 hours) Indirect labor Selling and administrative salaries $ 320,000 $ 108,000 $ 200,000 e. Maintenance costs incurred on account in the factory, $72,000 f. Advertising costs incurred on account, $154,000. 9. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $115.000 (80% related to factory facilities, and the remainder related to selling and administra facilities) 1. Manufacturing overhead cost was applied to jobs. $? j. Cost of goods manufactured for the year. $950,000. k Sales for the year (all on account) totaled $2,100,000. These goods cost $980,000 according to their job cost sheets. 1 a. Raw materials purchased on account, $290,000. b. Raw materials used in production (all direct materials). $275,000. c. Ulity bills incurred on account, $77,000 (90% related to factory operations, and the remainder related to selling activities). d. Accrued salary and wage costs: ts kipped Direct labor (970 hours) Indirect labor Selling and administrative salaries $ 320,000 $ 108,000 $ 200,000 Ook Print erences e. Maintenance costs incurred on account in the factory, $72,000 f. Advertising costs incurred on account, $154,000 9. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related administrative equipment). h. Rental cost incurred on account, $115,000 (80% related to factory facilities, and the remainder related to selling facilities) 1. Manufacturing overhead cost was applied to jobs, $_? J. Cost of goods manufactured for the year, $950,000 k. Sales for the year (all on account) totaled $2,100,000. These goods cost $980,000 according to their job costs The balances in the inventory accounts at the beginning of the year were: Raw Materials $ 48,000 Work in Process $ 39,000 Finished Goods $ 78,000 Required: The balances in the inventory accounts at the beginning of the year were: 3 Raw Materials $ 48,000 Work in Process $ 39,000 Finished Goods $ 78,000 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 G 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. Reg 1 Reg 2 Req3 Req 4A Req 4B Req5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/ever required" in the first account field.) View transaction list Journal entry worksheet

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