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fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- d on a cost formula that estimated estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year 5 points a. Raw materials purchased on account, $255,000. b. Raw materials used in production (all direct materials), $240,000. c Utility bills incurred on account, $70,000 (95% related to factory operations, and the remainder related to selling d. Accrued salary and wage costs: s 285,000 Indirect labor Se11ing and administrative salaries 101,000 s 165,000 e. Maintenance costs incurred on account in the factory, $65,000 f. Adivertising costs incurred on account, $147,000. g. Depreciation was recorded for the year, $83,000 (B0% related to factory equpment and the remainder related to seling ind admi h. Rentalcost incurred on account, $108,0 equipment). 85% related to factory facit es, and the emai der re ated to sell and a î is at e L Monufacturing overhead cost was applied to jobs, $ 2 J. Cost of goods manufactured for the year, $880,000. k. Sales for the year (all on account) totaled $1,750,000. These goods cost $910,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: <Prey 4of4Ⅲ Next MacBook Ain
4 J Cost of goods manufactured for the year, $880,000. k. Sales for the year (all on account) totaled $1750,000. These goods cost $910.000 according to their job cost sheets. 5 The balances in the inventory accounts at the beginning of the yedar $ 41,000 s 71,000 Print ReferencesRequired: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to T-accounts. (Dont 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 belovw Req 1 Req 2 Req 3 Req 4A Re 48Req 5 Prepare a journal entry to close any balance in the M transaction/ anufacturing Overhead account to Cost of Goods Sold. (af no entry is required for a on/event, select < Prex 4 of 4I Next 3 MacBook Air
Req 2 Prine MacBook Air
4 points Relerences
4 Req 3 peints Reg 4A 30
4 Req 4A points 31 MacBook Air
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Raw Materials Accounts Payable 255,000 255,000 Work in Process 240,000 Raw Materials 240,000 Manufacturing Overhead Utilities Expense Accounts Payable 66,500 3,500 70,000 Work in Process Manufacturing Overhead Salaries Expense Salaries and Wages Payable 285,000 101,000 165,000 551,000 Manufacturing Overhead Accounts Payable 65,000 65,000 Advertising Expense Accounts Payable 147,000 147,000 Manufacturing Overhead Depreciation Expense Accumulated Depreciation 66,400 16,600 83,000 Manufacturing Overhead Rent Expense Accounts Payable 91,800 16,200 108,000 Work in Process Manufacturing Overheag (predetemined overhead rate $373700/1010 DLH $370 per DLH -1085 HOURS* $370 401,450 401,450 Finished Goods 880,000 Work in Process 880,000 Accounts Receivable 1,750,000 Sales 1,750,000 Cost of Goods Sold 910,000 Finished Goods 910,000Accounts Receivable Sales 1,750,000 1,750,000 Raw Materials Cost of Goods Sold Bal 910,000 41,000 255,000 56,000 240,000 Bal Work in Process Manufacturing Overhead 66,500 101,000 65,000 66,400 91,800 Bal 32,000 240,000 285,000 401,450 78,450 880,000 401,450 e) Bal Bal 10,750 Finished Goods Advertising Expense Bal 71,000 880,000 41,000 910,000 147,000 Bal Accumulated Depreciation Utilities Expense 83,000 3,500 Accounts Payable Salaries Expense 255,000 70,000 65,000 147,000 108,000 165,000 Depreciation Expense 16,600 Salaries & Wages Payable Rent Expense 551,000 16,200Froya Fabrikker A/S Ques 3 Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning Purchases of raw materials Materials available for use Raw materials inventory, ending Materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing costs Add: Work in process, beginning 41,000 255,000 296,000 56,000 $240,000 285,000 401,450 926,450 32,000 958,450 78,450 $880,000 Deduct: Work in process, ending Cost of goods manufactured Ques 4 A) Manufacturing Overhead Cost of Goods Sold 10,750 10,750 B) Schedule of cost of goods solod Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct finished goods inventory, ending Unadjusted cost of goods sold Deduct: Overapplied overhead Adjusted cost of goods sold 71,000 $880,000 951,000 41,000 910,000 10,750 $899,250Froya Fabrikker A/S Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Advertising expense Utilities expense Salaries expense Depreciation expense Rent expense Net operating income $1,750,000 $899,250 850,750 $147,000 3,500 165,000 16,600 16,200 $348,300 S502,450

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