Froya Fabrikker A/S of Bergen, Norway, Is a small company that manufactures speclalty 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 $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year a. Raw materlals purchased on account, $290,000. b. Raw materials used In production (all direct materials), $275,000. C Utility bills incurred on account, $77,000 (90% related to factory operations, and the remainder related to selling and administrative activitles). d. Accrued salary and wage costs: Direct labor (970 hours) Indirect labor Selling and administrative salaries 320,000 s 108,000 200,000 e. Maintenance costs incurred on account in the factory, $72,000 f. Advertising costs incurred on account, $154,000. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) Rental cospncurred on account, S115,000 (80% related to factory facilities, and the remainder related to selling and administrative facltles). Manufacturing overhead cost was applied tojobs, S 2 - J Cost of goods manufactured for the year, $950,000. k. Sales for the year (ail on account) totaled $2.100.000. These goods cost $980.000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were: Raw Haterials Work in Process Finished Goods 4B,000 $ 39,000 $78,000 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. 5. Prepare an income statement for the year