Question

cant get number # 2 to come out right and number 4a and #5. please help...thank you

nment Print View Page 1 of Award: 5.00 points Froya Fabrikker AS of Bergen, Norwey is a wall company that manufactures specially 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 predetermined overhead rate was based on a cost formula that estimated $350.000 of manufacturing overhead for an estimated location base of 1,000 direct labor-hours. The following transactions took place during the year a Raw materials purchased on account, $250,000 b. Raw materials used in production (all direct materials) $235,000 U b is incurred on account 09.000 (0related to factory operations, and the remainder related to selling and administrative activities) d Accrued salary and wage costs $ 280 000 Odbor (1075 hours Indirect labor Seling and strative salaries Maintenance costs incurred on account in the factory, 554000 1. Advertising costs incurred on account. $140.000 9 Depreciation was recorded for the year, 582.000 (75% related to factory equipment, and the remainder related to selling and administrative equipment h Rental cost incurred on account $107.000 (80% related to factory facilities, and the remainder related to selling and administrative facilities) i Manufacturing overhead cost was applied to obs. 2 Cost of goods manufactured for the year, 5870,000 k Sales for the year all on account ed 1.700.000. These goods om 1900 000 according to the job cost sheets The balances in the inventory accounts at the beginning of the year were Raw Matera Work in Process Finished Goods $ 40000 $31.000 $ 70.000 Required: 1. Prepare journal entries to record the preceding transactions 2. Post your entries to accounts (Don't forget to enter the beginning inventory balances above.) 3. Prepare a schedule of cost of goods manufactured 4. Prepare a journey 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

Answer 1

Part 1: Sr No Account title Raw Materials Accounts Payable Debit Credit 250,000 250,000 Sr No Account title h. Manufacturing Overhead =107000*0.8 Rent Expense Accounts Payable Debit Credit 85,600 21,400 107,000 235.000 Work in Process Raw Materials 235,000 376,250 i.** Work in Process = 350*1075 Manufacturing Overhead 376,250 Manufacturing Overhead (69000*0.9) Utilities Expense Accounts Payable 62,100 6,900 870,000 Finished Goods Work in Process 870,000 Accounts Receivable Sales 1,700,000 280,000 100,000 160,000 1,700,000 TTFTTETTFITTE Work in Process Manufacturing Overhead Salaries Expense Salaries and Wages Payable 540,000 900,000 Cost of Goods Sold Finished Goods 900,000 64,000 Manufacturing Overhead Accounts Payable 146,000 350 Per DLH Advertising Expense Accounts Payable Predetermined overhead rate Eestimated overhead/estimated direct labor hours 350000/1000 146,000 Manufacturing Overhead = 82000*0.75 Depreciation Expense Accumulated Depreciation 61,500 20,500 82 000 Sheet142 Sheet1 43 Sheet144 Sheet145 Sheet146 Sheet147 Sheet148 Sheet1 49 Sheet150 I ENG US 23:06 07/02/2020 TU

Part 2: Accounts Receivable (k) 1,700,000 Sales (k) 1,700,000 Cost of Goods Sold (k) 900,000 Accounts Payable (a) 250,000 C 69,000 (e) 64,000 (0) 146,000 (h) 107,000 Bal. Raw Materials 40,000 (b) 235,000 250,000 55,000 Bal. Salaries & Wages Payable d) 540,000 Work in Process 31,000|6) 870,000 235,000 280,000 376,250 52,2501 | Manufacturing Overhead (c) 62,100 (0) 376,250 (d) 100,000 le) 64,000 (9) 61,500 (h) 85,600 Ball 3,050 Depreciation Expense (9) 20,500 (d) Bal. Rent Expense (h) 21,400 Finished Goods 70,000 (k) 900,000 870,000 40,000 Advertising Expense (0) 146,000 Bal. 6) Bal. Accumulated Depreciation (9) 82,000 @ Utilities Expense 6,900 Salaries Expense (d) 160,000

FroyaFabrikker A/S 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 | 40,000 250,000 290,000 55,000 235,000 280,000 376,250 891,250 31,000 922,250 52,250 870.000 Deduct: Work in process, ending Cost of goods manufactured Part 4A: Account title Manufacturing Overhead Cost of Goods Sold Debit Credit 3,050 3,050

4B.Schedule of cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct finished goods inventory, ending Una djusted cost of goods sold Deduct: Overapplied overhead Adjusted cost of goods sold 70,000 870,000 940,000 40.000 900,000 3.050 896,950 1,700,000 896,950 803,050 FroyaFabrikker A/S 5.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 146,000 6,900 160,000 20,500 21,400 354,800 448.250