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 $$373,700$ of manufacturing overhead for an estimated allocation base of $1,010$ direct labor$-$hours. The following transactions took place during the year: Raw materials purchased on account, $$255,000.$Raw materials used in production $($all direct materials$),$ $$240,000.$Utility bills incurred on account, $$70,000(95\%$ related to factory operations, and the remainder related to selling and administrative activities$).$Accrued salary and wage costs: Direct labor $(1,085$ hours$)$$ $285,000$Indirect labor$ $101,000$Selling and administrative salaries$ $165,000$ Maintenance costs incurred on account in the factory, $$65,000$Advertising costs incurred on account, $$147,000.$Depreciation was recorded for the year, $$83,000(80\%$ related to factory equipment, and the remainder related to selling and administrative equipment$).$Rental cost incurred on account, $$108,000(85\%$ related to factory facilities, and the remainder related to selling and administrative facilities$).$Manufacturing overhead cost was applied to jobs, $$?.$Cost of goods manufactured for the year, $$880,000.$Sales for the year $($all on account$)$ totaled $$1,750,000.$ These goods cost $$910,000$ according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials$ $41,000$Work in Process$ $32,000$Finished Goods$ $71,000$ Required:$1.$ Prepare journal entries to record the preceding transactions.

$2.$ Post your entries to T$-$accounts. $($Dont forget to enter the beginning inventory balances above.$)$

$3.$ Prepare a schedule of cost of goods manufactured.

$4$A$.$ Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

$4$B$.$ Prepare a schedule of cost of goods sold.

$5.$ Prepare an income statement for the year.