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 costformula that estimated $$60,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The Following transaction took place during the year: a) Raw materials purchased on account, $200,000. b) Raw materials used in production (all direct materials), $185,000. c) Utility bills incurred on account, $70,000 ( 90% related to factory operations, and the remainder related to selling and administrative activities). d) Accrued salany and ware costs: \begin{tabular}{r|rr} \hline Direct labor (975 hours) & $ & 230,000 \\ Indirect labor & $ & 90,000 \\ \hline Selling and Administrative salaries & $ & 110,000 \end{tabular} e) Maintenance costs incurred on account (use Acct Payable) in the factory, $54,000. f) Advertising costs incurred on account, $136,000. g) Depreciation was recorded for the year, $95,000 ( 80% related to factory equipment, and the remainder related to selling and administrative equipment). h) Rental cost incurred on account, $120,000 (85\% related to factory facilities, and the remainder related to selling and administrative facilities). i) Manufacturing overhead cost was applied to jobs (Hint: find the predetermined OH rate first, then calculate total OH applied) j) Cost of goods manufactured for the vear, $770,000. k) Sales for the year (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cost sheets. 1) Adjustment for over- or under-applied overhead (close to Cost of Goods Sold) The balances in the inventory accounts at the beginning of the year were: RawMaterials$WorkinProcess$FinishedGoods$30,00021,00060,000 Complete the Journal Entries and T-Accounts. Find the ending account balances. Prepare a Schedule of Cost of Goods Manufatured Prepare a Schedule of Cost of Goods Sold Prepare an Income Statement. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Froya Fabrikker A/s } & \\ \hline \multicolumn{1}{|c|}{ Cost of Goods Manufactured } & \\ \hline Direct Materials: & \\ \hline Beginning raw materials inventory & \\ \hline Purchases & \\ \hline Total raw materials available & \\ \hline Ending raw materials inventory & \\ \hline Materials used in production & \\ \hline Direct labor & \\ \hline Manufacturing overhead applied & \\ \hline Total Manufacturing costs & \\ \hline Add: Beginning work in procss inventory & \\ \hline & \\ \hline Deduct: Ending work in procss inventory & \\ \hline Cost of Goods Manufactured & \\ \hline \end{tabular}