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 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 administrativ activities). d. Accrued salary and wage costs: Direct labor (1,075 hours) Indirect labor $ 250,000 $ 94,000 Selling and administrative salaries $ 130,000 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. $88,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account. $113,000 (90% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost was applied to jobs, $2 J 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 Raw Materials $ 34,00 The balances In the Inventory accounts at the beginning of the year were: Raw Materials Work in Process $ 34,000 $ 25,000 Finished Goods $ 64,000 Saved 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 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/ required in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 B 12 The raw materials were purchased for use in production, $220.000 on account. to search O T