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 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 $351,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $265,000. b. Raw materials used in production (all direct materials), $250,000. c. Utility bills incurred on account, $72,000 (85% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: oints ook $ 295,000 $103,000 175,000 Direct labor (980 hours) Ask Indirect labor Selling and administrative salaries References e. Maintenance costs incurred on account in the factory, $67,000 f. Advertising costs incurred on account, $149,000. g. Depreciation was recorded for the year, $85,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h.Rental cost incurred on account, $110,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities) . Manufacturing overhead cost was applied to jobs, $? j. Cost of goods manufactured for the year, $900,000. k. Sales for the year (all on account) totaled $1,850,000. These goods cost $930,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: 43,000 34,000 73,000 Raw Materials Work in Process Finished Goods View transaction list Journal entry worksheet 2 12 1 3 4 6 7 8 The raw materials were purchased for use in production, $265,000 on account. Note: Enter debits before credits Credit Transaction Debit General Journal Raw materials 265,000 . 265,000 Accounts payable Clear entry Record entry View general journal