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Problem $3-15($Algo$)$ Journal Entries; T$-$Accounts; Financial Statements $[$LO$3-1,$ LO$3-2,$ LO$3-3,$ LO$3-4]$

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 laborhours. Its predetermined overhead rate was based on a cost formula that estimated $$399,000$ of manufacturing overhead for an estimated allocation base of $1,050$ direct labor$-$hours. The following transactions took place during the year:

a$.$ Raw materials purchased on account, $$280,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$265,000.$

c$.$ Utility bills incurred on account, related to factory operations, and the remainder related to selling and administrative activities$).$

d$.$ Accrued salary and wage costs:$\{$:$[$$$310","000],[$$$106","000],[$$$190","000]$:$\}$

e$.$ Maintenance costs incurred on account in the factory, $$70,000$

f$.$ Advertising costs incurred on account, $$152,000.$

$9.$ 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$).$

i$.$ Manufacturing overhead cost was applied to jobs, $ $?q,$

j$.$ Cost of goods manufactured for the year, $$930,000.$

k$.$ Sales for the year $($all on account$)$ totaled $$2,000,000.$ These goods cost $$960,000$ according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:Required:

Prepare journal entries to record the preceding transactions.

Post your entries to T$-$accounts. $($Don$\text{'}$t forget to enter the beginning inventory balances above.$)$

Prepare a schedule of cost of goods manufactured.

$4$A$.$ Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

$4$B$.$ Prepare a schedule of cost of goods sold.

Prepare an income statement for the year.

Complete this question by entering your answers in the tabs below.

Req $3$

Req $4$A

Req $4$B

Req $5$

Post your entries to T$-$accounts. $($Don$\text{'}$t forget to enter the beginning inventory balances above.$)$

Work in Process

$\backslash$table$[[$Debit Work in Process,,$],[$Seginning Balance,,,$],[,,,],[,,,],[,,,],[,,,]]$

$\backslash$table$[[$Sales$,,],[$Debit$,,,],[$Beginning Balance,,,Credit$],[,,,],[,,,],[$Ending Balance,,,$]]$

$\backslash$table$[[$Cost of Goods Sold,,,$],[$Debit$,,$Credit$],[$Beginning Balance,,,,$],[,,,,],[,,,,],[,,,,]]$

$\backslash$table$[[$Debit$,,],[$Seginning Balance,,,$],[,,,],[,,,],[,,,],[,,,]]$

Finished Goods

$\backslash$table$[[$Manufacturing Overhead$],[$Debit$,$Credit$],[$Beginning Balance$],[,,],[$Find$],[$F$],[],[=$

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