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 $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $255,000. b. Raw materials used in production (all direct materials), $240,000 c. Utility bills incurred on account, $70,000 (95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs Direct labor (1,085 hours) Indirect labor Selling and administrative salaries $285,000 $101,000 $165,000 e. Maintenance costs incurred on account in the factory, $65,000 1. Advertising costs incurred on account, $147,000. g. Depreciation was recorded for the year, $83,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $108,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) L Manufacturing overhead cost was applied to jobs, $? J. Cost of goods manufactured for the year, $880,000 k Sales for the year (all on account) totaled $1,750,000. These goods cost $910,000 according to their job cost sheets The balances in the inventory accounts at the beginning of the year were: Raw Materials $ 41,000 Work in Process $ 32,000 Finished Goods $ 71,000 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 4B. 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. Req 1 Req 2 Req 3 Req 4A Req 48 Req 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 12 The raw materials were purchased for use in production, $255,000 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit