$3$

$15$

points

Froya Fabrikker A$/$S of Bergen, Norway, 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 based on direct labor$-$hours. Its predetermined overhead rate was based on a cost formula that estimated $$357,000$ of manufacturing overhead for an estimated allocation base of $1,020$ direct labor$-$hours. The following transactions occurred during the year:

a$.$ Raw materials purchased on account, $$260,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$245,000.$

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:e$.$ Maintenance costs incurred on account in the factory, $$66,000$f$.$ Advertising costs incurred on account, $$148,000.$g$.$ Depreciation recorded for the year, $$84,000(75\%$ related to factory equipment, and the remainder related to selling and administrative equipment$).$h$.$ Rental cost incurred on account, $$109,000(80\%$ related to factory facilities, and the remainder related to selling and administrative facilities$).$i$.$ Manufacturing overhead cost applied to jobs, $j$.$ Cost of goods manufactured, $$890,000.$k$.$ Sales for the year $($all on account$)$ totaled $$1,800,000.$ These goods cost $$920,000$ according to their job cost sheets.

The beginning balances in the inventory accounts were:

$\backslash$table$[[$Raw Materials,$$42,000$