Froya Fabrikker A/S of Bergen, Norway, is a s mall company that manufactures specidlty heavy equipment for use in North Sea oil 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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $260,000. b. Raw materials used in production (all direct materials), $245,000. C. Utility bills incurred on account, $71,000 (80% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,095 hours) Indirect labor Selling and administrative salaries 290,00e 102,eee $ 170,eee e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). Prev 1 of 1 Next 7:07 PM L 50% 9/5/2019 search Check my work e. Maintenance costs incurred on account in the factory, $66,000 f.Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84.000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $109,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $ ? j. Cost of goods manufactured for the year, $890,000. k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the inventory ccounts at the beginning of the year were: Raw Materials Work in Process Finished Goods $ 42,000 33,eee $72,00e 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 Goods Sold 4B. Prepare a schedule of cost of goods sold. Prev 1 of 1 Next Check my w Prepare an income statement for the year Froya Fabrikker A/S Income Statement For the Year Ended 0 Selling and administrative expenses: Req 4B Prev 1 of 1 Next