Question: Please help me with my wrong answer Froya Fabrikiker A.S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in



Froya Fabrikiker A.S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fuelds. 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 $360.000 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, $200.000. b. Raw materials used in production (all direct materiais). $185,000 c. Utility bills incurred on account, $70.000 (90\% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: e. Maintenance costs incurfed on account in the factory. $54,000. f. Advertising costs incurfed on account, \$136.000. 9. Depreciation was recorded for the year. $95,000 po\% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120.000 (85\% related to factory facilities, and the remainder related to seliing and administrative facilities) i. Manufacturing overhead cost was applied to jobs, $ ? j. Cost of goods manufactured for the year, $770.000 K. Sales for the year fall on account) totaied $1.200,000. These goods cost $800,000 according to their job cost sheets. 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.) 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. X Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods sold. epare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (If no entr) quired for a transaction/event, select "No journal entry required" in the first account field.) Prepare an income statement for the year
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
