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 laborhours. Its predetermined overhead rate was based on a cost formula that estimated $399,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $280,000. b. Raw materials used in production (all direct materials), $265,000. c. Utility bilis incurred on account, $75,000 ( 80% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: c. Maintenance costs incurred on account in the factory. $70.000 t. Advertising costs incurred on account, $152,000. 9. Depreciation was recorded for the year, $88,000 (85\% reloted to foctory equipment, and the remainder retated to solling and odministrative equipment). h. Rental cost incurred on accoum, $113,000(90% related to factory facilties, and the remainder related to selling and administrative facilites). 1. Manufacturing overhead cost was applied to jobs, $ ? j. Cost of goods manufactured for the year, $930,000. k. Soles for the year (ali on account) totaled $2,000,000. These goods cost $960,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: 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