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Froya Fabrikker AJS of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll fields. The company uses

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Froya Fabrikker AJS of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll 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 $329,000 or manufacturing overhead foron estimated allocation base of 940 direct labor hours. The following transactions took place during the year 2. Raw materials purchased on account, $205,000 b Raw materials used in production (all direct materials), $190,000 c. Utility bills incurred on account $60,000 190% related to factory operations, and the remainder related to selling and administrative activities d. Accrued salary and wage costs Direct Labor (1,015 hours) Indirect labor Selling and administrative salaries $ 235,000 $91,000 $ 115,000 . Maintenance costs incurred on account in the factory, 555,000 Advertising costs incurred on account $137000 o Depreciation was recorded for the year $85.000 (70% related to factory equipment, and the remainder related to selling and administrative equipment) Rental cost incurred on account, $110,000x75% related to factory facilities, and the remainder related to selling and administrative facilities Manufacturing overhead cost was applied to jobs, 5.2 Cost of goods manufactured for the year, 5780,000 K Sales for the year fall on account totaled $1250.000 Those goods cost $810.000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were Raw Materials Work in process Finished Goods 531.000 522,000 561.000 Required Prepare journal entries to record the preceding transactions 2. Post your entries to accounts (Don't forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods manufactured 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 4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Good 48. Prepare a schedule of cost of goods sold, 5. Prepare an income statement for the year

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