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 ofdirect labor hours. Its predetermined overhead rate was based on a cost formula that estimated $382,500 of manufacturing overhead for an estimated allocation base of 850 direct laborhours. The following transactions took place during the year: a. Raw materials purchased on account. $300,000. b. Raw materials used in production {all direct materials], $285,000. c. Utility bills incurred on account, $79,000 [80% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (950 hours) $ 330,000 Indirect labor $ 110,000 Selling and administrative salaries $ 210,009 e. Maintenance costs incurred on account in the factory. $74,000 f. Advertising costs incurred on account, $156,000. g. Depreciation was recorded for the year, $92,000 [8 '56 related to factory equipment, and the remainder related to selling and administrative equipment]. h. Rental cost incurred on account, $117,000 {85% related to factory facilities, and the remainder related to selling and administrative facilities}. i. Manufacturing overhead cost was applied tojobs, $ ? . j. Cost ofgoods manufactured for the year, $970,000. k. Sales for the year {all on account] totaled $2,200,000. These goods cost $1,000,000 according to theirjob cost sheets. The balances in the inventory accounts at the beginning of the yearwere: Raw Materials $ 50,000 work in Process $ 41,006- Finished Goods $ 80,000 Required: 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to T-accounts. [Don't forget to enterthe 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 ofGoods Sold. 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Sales Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Raw Materials Cost of Goods Sold Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Work in Process Manufacturing Overhead Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Finished Goods Advertising Expense Debit Credit Debit CreditEnding Balance Ending Balance Finished Goods Advertising Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Accumulated Depreciation Utilities Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Accounts Payable Salaries Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Depreciation Expense Salaries & Wages PayableUGUIL CIGUIL UGUIL CIGUIL Beginning Balance Beginning Balance Ending Balance Ending Balance Depreciation Expense Salaries & Wages Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Rent Expense Debit Credit Beginning Balance Ending Balance 4B. 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. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Prepare a schedule of cost of goods manufactured. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured