Expert Q&A Froys Fabrikker A/S of Bergen, Norgey, is a small company that manufactures specialty heavy equipment for use in North Sea of The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated alocation bese of 900 direct labor hours. The following transactions took place during the year Raw materials purchased on account $200,000 b. Raw materials used in production (all direct material, $185,000 Unity bits incurred on account, $70.000 (80% related to factory operations, and the remainder related to selling and administrative activities Accrued salary and wage costs Maintenance costs incurred on account in the factory, $54,000 Advertising costs incurred on account, $136,000 Depreciation was recorded for the year, $95.000 (80% related to factory equipment, and the remainder related to selling and administrative equipment Rental cost incurred on account $20.000 (85% related to factory facilities Manufacturing overhead cost was applied to jobs, S Cast of goods manufactured for the year, $270.000 remainder related to sing and administrative Sales for the year at on account totaled $1200.000. These goods cost $800,000 according to their job cost sheets Done Expert Q&A The balances in the inventory accounts at the at the beginning of the year were: Raw Materials 30000 $21,000 60,000 Work in Process Finished Goods Required: 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to T-accounts. (Don't 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 48. Prepare a schedule of cost of goods sold, 5. Prepare an income statement for the year. Done Expert Q&A Req 1 Req 2 Req 3 Req 4A Req 48 Req 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured Expert Q&A Done ney Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Expert Q&A Froya Fabrikker A/S Income Statement For the Year Ended Selling and administrative expenses: 0 $ 0 0