Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll 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 thot estimated $380,000 of manufacturing overhead for an estimated allocation base of 1000 direct labor-hours. The following transactions took place during the year, Raw materials purchased on account, $275,000, b. Raw materials used in production (all direct materials) $260,000 c Utility bills incurred on account, $74,000 (95% related to factory operations, and the remainder related to selling and administrative d. Accrued salary and wage costs Direct labor (1,100 hours) Indirect labor Selling and administrative salaries $ 305,000 $ 105,000 $ 185,000 e Maintenance costs incurred on account in the factory, $69.000 f Advertising costs incurred on account. $151,000 Depreciation was recorded for the year. $87000 (80% related to factory equipment and the remainder related to selling and h Rental cost incurred on account. 5112,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, $? Cost of goods manufactured for the year $920,000 k Sales for the vear (all on account) totaled $1.950.000. These coods cost $950 000 according to thelriob cost sheets The balances in the inventory accounts at the beginning of the year were Raw Materials Work in Process Finished Goods $ 45,000 $ 36,000 $ 75,000 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 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg Reg 4B Rod 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement