Froya Fabrikker A$/$S of Bergen, Norway, is a small company that 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 on the basis of direct labor$-$hours. Its predetermined overhead rate was based on a cost formula that estimated $$360,000$ of manufacturing overhead for an estimated allocation base of $900$ direct labor$-$hours. The following transactions took place during the year: Raw materials purchased on account, $$200,000.$Raw materials used in production $($all direct materials$),$ $$185,000.$Utility bills incurred on account, $$70,000(90\%$ related to factory operations, and the remainder related to selling and administrative activities$).$Accrued salary and wage costs: Direct labor $(975$ hours$)$$ $230,000$Indirect labor$ $90,000$Selling and administrative salaries$ $110,000$ Maintenance costs incurred on account in the factory, $$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, $$120,000(85\%$ related to factory facilities, and the remainder related to selling and administrative facilities$).$Manufacturing overhead cost was applied to jobs, $$?.$Cost of goods manufactured for the year, $$770,000.$Sales for the year $($all on account$)$ totaled $$1,200,000.$ These goods cost $$800,000$ according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials$ $30,000$Work in Process$ $21,000$Finished Goods$ $60,000$ Required:$1.$ Prepare journal entries to record the preceding transactions$\mathrm{.}2.$ Post your entries to T$-$accounts. $($Dont forget to enter the beginning inventory balances above.$)3.$ Prepare a schedule of cost of goods manufactured$\mathrm{.}4$A$.$ Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold$\mathrm{.}4$B$.$ Prepare a schedule of cost of goods sold$\mathrm{.}5.$ Prepare an income statement for the year.