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Froya Fabrikker As of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses

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Froya Fabrikker As 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 $380.000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $220,000. b. Raw materials used in production (all direct materials), $205,000. c. Utility bills incurred on account, $63,000 (90\% related to factory operations, and the remainder related to selling and administrative activities). d: Accrued salary and wage costs e. Maintenance costs incuired on account in the factory. $58,000 1. Advertising costs incurred on account. $140,000. 9. Depreciation was recorded for the year, $88,000 (85\% related to factory equipment, and the remainder related to selling and: administrative equipment) Th. Rental cost incurred on account, $113.000(90% related to factory tacilities, and the remainder related to selling and adiministrative. facilitiesy. L. Manufacturing overhead cost was applied to jobs. 5 ? 1. Cost of goods manufactured for the year, $810,000 k Sates for the year (all on account) totaled $1,400,000. These goods cost $840,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were Required: 1. Prepare journal entries torecord the preceding transactions 2. Post your entries to Taccounts. (Don t forget to enter the beginning inventory balances above) 3. Prepare a schedule of cost of goods mariufactured 4A. Picpare o journgl entry to close any balance in the Manufacturing Overhead account to Cost or Goods. Sold. 4B. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. Comolete this auestion bo enterino vour answers in the tabs below

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