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input journal entries to record the preceding transactions.

Froya Fabrikker AS 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 laborhours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $240.000. b. Raw materials used in production (all direct materials), $225.000 c. Utility bills incurred on account, $67.000 (95\% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: e. Maintenance costs incurred on account in the factory, $62,000 f. Advertising costs incurred on account $144,000. g. Depreciation was recorded for the year, $80,000(85% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $105,000(90% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $850,000. k. Sales for the year (all on account) totaled $1,600,000. These goods cost $880,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: The balances in the inventory accounts at the beginning of the year were: 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. 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. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry Prequired" in the first account field.) requile Journal entry worksheet 7812 The raw materials were purchased for use in production, $240,000 on account. Note: Enter debits before credits. Journal entry worksheet The raw materials used in production (all direct materials), $225,000. Note: Enter debits before credits. Journal entry worksheet The utility bills were incurred on account, $67,000 (95\% related to factory operations, and the remainder related to selling and administrative activities). Note: Enter debits before credits. Journal entry worksheet The salary and wage costs accrued were $270,000 (Direct labor), $98,000 (Indirect labor), $150,000 (Selling and administrative salaries). Note: Enter debits before credits. Journal entry worksheet The maintenance costs were incurred on account in the factory, $62,000. Note: Enter debits before credits. Journal entry worksheet The advertising costs were incurred on account, $144,000. Note: Enter debits before credits. Journal entry worksheet The depreciation was recorded for the year, $80,000 ( 85% related to factory equipment, and the remainder related to selling and administrative equipment). Note: Enter debits before credits. Journal entry worksheet The entry for rental cost incurred on account on buildings, $105,000(90% related to factory facilities, and the remainder related to selling and administrative facilities). Note: Enter debits before credits. Journal entry worksheet The entry for manufacturing overhead cost applied to jobs. Note: Enter debits before credits. Journal entry worksheet 156789 The cost of goods manufactured for the year, $850,000. Note: Enter debits before credits. Journal entry worksheet 156789 The sales for the year (all on account) totaled $1,600,000. Note: Enter debits before credits. Journal entry worksheet The goods cost $880,000 according to their job cost sheets. Note: Enter debits before credits

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