Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system and 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 $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account):

Froya Fabrikker AS of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea of 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 $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $230,000 b Raw materials used in production (all direct materials), 5215,000 c. Utility bills incurred on account $65.000 (85% related to factory operations, and the remainder related to selling and administrative d Accrued salary and wage costs Direct IOE 18. 135 hours) Indirect labor Selling and distrative artes $260,000 56,000 C 140.000 e Maintenance costs incurred on account in the factory, $60,000 Advertising costs incurred on account. $142.000 9 Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) h Rental cost incurred on account $115,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities I Advertising costs incurred on account, $142.000 g Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $115,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, $_? Cost of goods manufactured for the year $830,000 k Sales for the year (all on account) totaled $1,500,000. These goods cost $860,000 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 $36,000 $27,000 66,000 Required: 1. 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. 4A Prepare a journal 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