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 $$349,800$ of manufacturing overhead for an estimated allocation base of $1,060$ direct labor$-$hours. The following transactions took place during the year:

a$.$ Raw materials purches$-$sed on account, $$230,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$215,000.$

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:

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 $1$

Req $2$

Req $3$

Req $4$A

Req $4$B

Rea $5$

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