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 $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 e utility bils incurred on account. S63.000 (90% related to factory operations, and the remainder related to selling and administrative d. Accrued salary and wage costs 94,080 $ 130,e09 e. Maintenance costs incurred on account in the factory, $58,000 1. Advertising costs incurred on account, $140,000 g Depreciation was recorded for the year. S88000 (85% related to factory equipment, and the remainder related to selling and h. Rental cost incurred on account, $113 0 0 9 % related to factory facilites, and the remainder related to selling and administrative facilities) . Manufacturing overhead cost was applied to jobs, S2 Cost of goods manufactured for the year, $810,000 k. Sales 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: Mork in Process s 25,000