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 $$388,800$ of manufacturing overhead for an estimated allocation base of $810$ direct labor$-$hours. The following transactions occurred during the year:

a$.$ Raw materials purchased on account, $$295,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$280,000.$

c$.$ Utility bills incurred on account, $$78,000(95\%$ related to factory operations, and the remainder related to selling and administrative activities$).$

d$.$ Accrued salary and wage costs:

$\backslash$table$[[$Direct labor $(890$ hours$),$$$325,000$

$\backslash$table$[[$Direct labor $(890$ hours$),$$$325,000$

$1.)$ Prepare journal entries to record the preceding transactions

$2.)$ post your entries to T$-$accounts $($dont forget to enter the beginning inventiry balances above$)$

$3.)$ prepare a schedule of cost of goods manufactured

$4$A prepare a jouranl entry to close manufacturing overhead account to cost of goods sold

$4$B prepare a schedule of cost of goods sold

$5$ prepare an income statement