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 $378,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year:

1. Raw materials purchased on account, $285,000.
2. Raw materials used in production (all direct materials), $270,000.
3. Utility bills incurred on account, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

Direct labor (950 hours)	$ 315,000
Indirect labor	$ 107,000
Selling and administrative salaries	$ 195,000

1. Maintenance costs incurred on account in the factory, $71,000
2. Advertising costs incurred on account, $153,000.
3. Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment).
4. Rental cost incurred on account, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities).
5. Manufacturing overhead cost was applied to jobs, $?.
6. Cost of goods manufactured for the year, $940,000.
7. Sales for the year (all on account) totaled $2,050,000. These goods cost $970,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Raw Materials	$ 47,000
Work in Process	$ 38,000
Finished Goods	$ 77,000

2. Post your entries to T-accounts. (Dont forget to enter the beginning inventory balances above.)

Accounts Receivable Sales Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Raw Materials Cost of Goods Sold Debit Credit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Work in Process Manufacturing Overhead Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Finished Goods Advertising Expense Debit Credit Credit Debit Beginning Balance Beginning Balance Ending Balance Utilities Expense Accumulated Depreciation Debit Beginning Balance Credit Debit Credit Beginning Balance Ending Balance Ending Balance Accounts Payable Salaries Expense Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Depreciation Expense Credit Debit Beginning Balance Credit Salaries & Wages Payable Debit Beginning Balance Ending Balance Ending Balance Rent Expense Credit Debit Beginning Balance Ending Balance