Info in images2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)Accounts Receivable SalesBeg. Bal. Beg. Bal. End. Bal. End. Bal. Raw MaterialsCost of Goods SoldBeg. Bal. Beg. Bal. End. Bal. End. Bal. Work in ProcessManufacturing OverheadBeg. Bal. Beg. Bal. End. Bal. End. Bal. Finished GoodsAdvertising ExpenseBeg. Bal. Beg. Bal. End. Bal. End. Bal. Accumulated DepreciationUtilities ExpenseBeg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts PayableSalaries ExpenseBeg. Bal. Beg. Bal. End. Bal. End. Bal. Depreciation ExpenseSalaries & Wages PayableBeg. Bal. Beg. Bal. End. Bal. End. Bal. Rent ExpenseBeg. Bal. End. Bal. Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oilfields. 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 $351,000 of manufacturing overhead for anestimated allocation base of 900 direct labor-hours. The following transactions took place during the year:a. Raw materials purchased on account, $265,000.b. Raw materials used in production (all direct materials), $250,000.c. Utility bills incurred on account, $72,000 (85% related to factory operations, and the remainder related to selling and administrativeactivities).d. Accrued salary and wage costs:Direct labor (980 hours)$ 295,000$ 103,000$ 175,000Indirect laborSelling and administrative salariese. Maintenance costs incurred on account in the factory, $67,000f. Advertising costs incurred on account, $149,000.g. Depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling andadministrative equipment).h. Rental cost incurred on account, $110,000 (75% related to factory facilities, and the remainder related to selling and administrativefacilities).i. Manufacturing overhead cost was applied to jobs, $_ ?.j. Cost of goods manufactured for the year, $900,000.k. Sales for the year (all on account) totaled $1,850,000. These goods cost $930,000 according to their job cost sheets.The balances in the inventory accounts at the beginning of the year were:$ 43,000$ 34,000$ 73,000Raw MaterialsWork in ProcessFinished Goods 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.Req 1Req 2Req 3Req 4AReq 4BReq 5Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.)

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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 $351,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $265,000. b. Raw materials used in production (all direct materials), $250,000. c. Utility bills incurred on account, $72,000 (85% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: $ 295,000 $ 103,000 $ 175,000 Direct labor (980 hours) Indirect labor Selling and administrative salaries e. Maintenance costs incurred on account in the factory, $67,000 f. Advertising costs incurred on account, $149,000. g. Depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $110,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $_ ? . j. Cost of goods manufactured for the year, $900,000. k. Sales for the year (all on account) totaled $1,850,000. These goods cost $930,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: $ 43,000 $ 34,000 $ 73,000 Raw Materials Work in Process Finished Goods

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q