Fraya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll fields. 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 $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor hours. The following transactions took place during the year. a Raw materials purchased on account, $295,000 b. Raw materials used in production (al direct materials). $290,000. Utility bills incurred on account, $79,000 (95% related to factory operations, and the remainder related to selling and administrative activities. d. Accrued salary and wage costs: Direct labas (13 hours) Indirect labor Selling and administrative walories 5325,00 $ 109,00 $ 205,000 c. Maintenance costs incurred on account in the factory, $73.000 t Advertising costs incurred on account. $155,000. 9 Depreciation was recorded for the year. $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h Rental cast incurred on account, $105,000 (85% related to factory faclities, and the remainder related to selling and administrative L Manufacturing overhead cost was applied to jobs. $ ? Cost of goods manufactured for the year. $960,000 k Sales for the year (all on account totaled $2150,000. These goods cost $990,000 according to their job cost sheets. facilities The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in PEDER Finished Goods 549,00 $ 40,00 $79.000 Required: 1. Prepare Joumal 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. 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. Complete this question by entering your answers in the tabs below. Re 1 Reg 2 Req3 Req4A Re 40 Reg 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No joumal entry required in the first account field.) View transaction Journal entry worksheet The raw materials were purchased for use in production, $295,000 on account Note: Enter debit before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal Req Req2 >