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 $$399,000$ of manufacturing overhead for an estimated allocation base of $1,050$ direct labor$-$hours. The following transactions took place during the year:Raw materials purchased on account, $$280,000.$Raw materials used in production $($all direct materials$),$ $$265,000.$Utility bills incurred on account, $$75,000(80\%$ related to factory operations, and the remainder related to selling and administrative activities$).$Accrued salary and wage costs:Direct labor $(1,100$ hours$)$Indirect laborSelling and administrative salaries$ $310,000$$ $106,000$$ $190,000$Maintenance costs incurred on account in the factory, $$70,000$Advertising costs incurred on account, $$152,000.$Depreciation was recorded for the year, $$88,000(85\%$ related to factory equipment, and the remainder related to selling and administrative equipment$).$Rental cost incurred on account, $$113,000(90\%$ 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, $$930,000.$Sales for the year $($all on account$)$ totaled $$2,000,000.$ These goods cost $$960,000$ according to their job cost sheets.The balances in the inventory accounts at the beginning of the year were:Raw Materials$=$ $ $46,000$Work in Process$=$ $ $37,000$ Finished Goods$=$ $ $76,000$Required:Prepare journal entries to record the preceding transactions.Post your entries to T$-$accounts. $($Don$\text{'}$t forget to enter the beginning inventory balances above.$)$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