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 $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $295,000. b. Raw materials used in production (all direct materials), $280,000 C. Utility bills incurred on account, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (890 hours) Indirect labor Selling and administrative salaries $ 325,eee $ 109,00e $ 205,eee e. Maintenance costs incurred on account in the factory, $73,000 f. Advertising costs incurred on account, $155,000 g. Depreciation was recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $105,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) i. Manufacturing overhead cost was applied to jobs, $_ J. Cost of goods manufactured for the year, $960,00o. k. Sales for the year (all on account) totaled $2,150,000. These goods cost $990,000 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 $ 49,000 $ 40,00e $ 79,008 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