3-31 on pp. 136-137 p3-31(2).pdf. Your assignment will be graded based on how you: 1. Create the job cost equations for Materials, WIP, and FG. 2. Construct a T-account for Actual OH and a separate T-account for Applied OH. Calculate the absolute difference between the actual OH and the applied OH, and label whether the applied overhead is over- or under-applied. 3. Construct the Income Statement; make sure to determine the "adjusted COGS" before you calculate the Gross Margin. LO4, LOS, LO6, L07, L08] PROBLEM 3-31 Journal Entries; T-Accounts; Comprehensive Problem; Financial Statements; (L03 Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. (The Norwegian currency is the krone, which is denoted Systems Design: Job-Order Costing by Nkr.) jobs on the basis of direct labor-hours. At the beginning of the year, the following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost. Nkr360,000; and direct labor-hours, 900. The following transactions took place during the year (all purchases and services were ac- quired on account): L c Raw materials were purchased for use in production, Nkr200,000. b. Raw materials were requisitioned for use in production (all direct materials), Nkr185,000. Utility bills were incurred. Nkr70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage costs were incurred: Direct labor (975 hours) Indirect labor Selling and administrative salaries.. c. Maintenance costs were incurred in the factory, Nkr54,000. f Advertising costs were incurred, Nkr136,000. Nkr230,000 Nkr90,000 Nkr110,000 g Depreciation was recorded for the year, Nkr95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on buildings, Nkr120,000 (85% related to factory operations, and the re- mainder related to selling and administrative facilities). J Manufacturing overhead cost was applied to jobs, Nkr 2 Cost of goods manufactured for the year, Nkr770,000. k Sales for the year (all on account) totaled Nkr1,200,000. These goods cost Nkr800,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process. Finished Goods Nkr30,000 Nkr21,000 Nkr60,000 Reqared: 1. Prepare journal entries to record the preceding data. 2. Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. 3 Prepare a schedule of cost of goods manufactured. 4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold. 5. 6 Prepare an income statement for the year. lub 412 was one of the many jobs started and completed during the year. The job required Nkr8,000 in direct materials and 39 hours of direct labor time at a total direct labor cost of Nk9,200. The job contained only four units. If the company bills at a price 60% above the Unit product cost on the job cost sheet, what price per unit would have been charged to the customer