Question: I need help on req 2 through 5 if you could also check req 1, (there are no selling and admin labels/tabs to use) that










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 $336,000 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 $225,000 b. Raw materials used in production (all direct materials). $210,000 c. Utility bills incurred on account, $58,000 (95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1.125 hours) Indirect labor Selling and administrative salaries $ 255,000 $ 95,000 $ 135,000 e. Maintenance costs incurred on account in the factory, $59,000 1. Advertising costs incurred on account. $141,000. g. Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $114,000 (75% 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. $820,000 k. Sales for the year (all on account totaled $1,450,000. These goods cost $850,000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were: Raw Materials $ 35,000 Work in Process $ 26,000 Finished Goods $ 65,000 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. Debit Credit No Transaction General Journal 225,000 1 a Raw materials Accounts payable 225,000 210,000 2 b Work in process Raw materials 210,000 55,100 3 c Manufacturing overhead Accounts payable 55,100 4 d. Work in process Manufacturing overhead Salaries expense Salaries and wages payable 255,000 95,000 135,000 485,000 59,000 5 e Manufacturing overhead Accounts payable 59,000 141.000 6 1 Advertising expense Accounts payable 141,000 7 g. Manufacturing overhead Depreciation expense Accumulated depreciation 62,300 26,700 89,000 8 h 85,500 Manufacturing overhead Accounts payable 85,500 9 i 360,000 Work in process Manufacturing overhead 360,000 10 820,000 Finished goods Work in process 820,000 11 k(1) 1,450,000 Cost of goods sold Finished goods 1.450,000 12 k(2) 195,000 Accounts receivable Sales 195,000 Sales Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Debit Credit Debit Beginning Balance Beginning Balance Credit Ending Balance Ending Balance Raw Materials Cost of Goods Sold Credit Credit Debit Beginning Balance Gross margin Debit Beginning Balance 35,000 Ending Balance Ending Balance 35,000 Work in Process Credit Manufacturing Overhead Debit Beginning Balance Debit Beginning Balance Credit Finished Goods Advertising Expense Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Utilities Expense Accumulated Depreciation Debit Beginning Balance Credit Credit Debit Beginning Balance Ending Balance Ending Balance Accounts Payable Salaries Expense Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Depreciation Expense Debit Credit Salaries & Wages Payable Debit Beginning Balance Credit Beginning Balance Ending Balance Ending Balance Rent Expense Credit Debit Beginning Balance Ending Balance Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for 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. Note: Enter debits before credits Transaction General Journal Debit Credit 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 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses: 0 0 $
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