Froya Fabrikker A$/$S of Bergen, Norway, 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 based on direct labor$-$hours. Its predetermined overhead rate was based on a cost formula that estimated $$349,800$ of manufacturing overhead for an estimated allocation base of $1,060$ direct labor$-$hours. The following transactions occurred during the year: Raw materials purchased on account, $$230,000.$ Raw materials used in production $($all direct materials$),$ $$215,000.$ Utility bills incurred on account, $$65,000(85\%$ related to factory operations, and the remainder related to selling and administrative activities$).$ Accrued salary and wage costs: Direct labor $(1,135$ hours$)$ $ $260,000$ Indirect labor $ $96,000$ Selling and administrative salaries $ $140,000$ Maintenance costs incurred on account in the factory, $$60,000$ Advertising costs incurred on account, $$142,000.$ Depreciation recorded for the year, $$90,000(75\%$ related to factory equipment, and the remainder related to selling and administrative equipment$).$ Rental cost incurred on account, $$115,000(80\%$ related to factory facilities, and the remainder related to selling and administrative facilities$).$ Manufacturing overhead cost applied to jobs, $$?$question mark$.$ Cost of goods manufactured, $$830,000.$ Sales for the year $($all on account$)$ totaled $$1,500,000.$ These goods cost $$860,000$ according to their job cost sheets. The beginning balances in the inventory accounts were: Raw Materials $ $36,000$ Work in Process $ $27,000$ Finished Goods $ $66,000$ 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. $4$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.Froya Fabrikker A$/$S of Bergen, Norway, 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 based on direct labor$-$hours. Its predetermined overhead

rate was based on a cost formula that estimated $$349,800$ of manufacturing overhead for an estimated allocation base of $1,060$ direct

labor$-$hours. The following transactions occurred during the year:

a$.$ Raw materials purchased on account, $$230,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$215,000.$

c$.$ Utility bills incurred on account, $$65,000(85\%$ related to factory operations, and the remainder related to selling and administrative

activities$).$

d$.$ Accrued salary and wage costs:

Direct labor $(1,135$ hours$)$ $$260,000$

Indirect labor $$96,000$

Selling and administrative salaries $$140,000$

Selling and administrative salaries

$$140,000$

e$.$ Maintenance costs incurred on account in the factory, $$60,000$

f$.$ Advertising costs incurred on account, $$142,000.$

g$.$ Depreciation recorded for the year, $$90,000(75\%$ related to factory equipment, and the remainder related to selling and

administrative equipment$).$

h$.$ Rental cost incurred on account, $$115,000(80\%$ related to factory facilities, and the remainder related to selling and administrative

facilities$).$

i$.$ Manufacturing overhead cost applied to jobs, $$?$

j$.$ Cost of goods manufactured, $$830,000.$

k$.$ Sales for the year $($all on account$)$ totaled $$1,500,000.$ These goods cost $$860,000$ according to their job cost sheets.

The beginning balances in the inventory accounts were:

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.

$4$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.

Prepare an income statement.

Complete this question by entering your answers in the tabs below.

Post your entries to T$-$accounts. $($Don$\text{'}$t forget to enter the beginning inventory balances above.$)$