Froya Fabrikker AIS of Bergen, Norway. is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses ajoborder costing system that applies manufacturing overhead cost to jobs on the basis of direct labor hours. lts predetermined overhead rate was based on a cost formula that estimated $322,000 of manufacturing overhead for an estimated allocation base of 1,200 direct laborhours. The following transactions took place during the year: a. Raw materials purchased on account $240000. b. Raw materials used in production (all direct materials], $225,000. c. Utility bills incurred on account, $61000 [9 '36 related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,275 hours) $ 270,066 Indirect labor $ 98,066 Selling and administrative salaries $ 150,066 e. Maintenance costs incurred on account in the facto ry. $62,000 f. Advertising costs incurred on account, $144,000. g. Depreciation was recorded for the year, $80,000 {85% related to factory equipment. and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $105,000 [90% related to factory facilities, and the remainder related to selling and administrative facilities}. i. Manufacturing overhead cost was applied tojobs, $ ? . j. Cost of goods manufactured for the year. $850,000. k. Sales for the year {all on account] totaled $1,600,000. These goods cost $880,000 according to theirjob cost sheets. The balances in the inventory accounts at the beginning ofthe year were: Raw Materials $ 38,066 work in Process $ 29,066 Finished Goods $ 68,066 Required: 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to Taccounts. [Don't forget to enter the beginning inventory balances above.) 3. Prepare a schedule of cost of goods manufactured. 4A. Prepare ajournal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Ken 1 Ken 2 Ree 3 Req 4A Req 4B Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transactionfevent, select "No journal entry required" in the rst account field.) View transaction list Journal entry worksheet The rain.r materials were purchased for use in production, $240,000 on account. Note: Enter debits before credits. Clear entry View general jonmal