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 $382,500 of manufacturing overhead for an estimated allocation base of 850 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $300,000 b. Raw materials used in production (all direct materials). $285,000. c. Utility bills incurred on account, $79,000 (80% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (950 hours) Indirect Labor Selling and administrative salaries 330,000 $110,000 $210,000 e. Maintenance costs incurred on account in the factory. $74,000 Advertising costs incurred on account, $156,000. g. Depreciation was recorded for the year, $92,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $117,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost was applied to jobs, $ Cost of goods manufactured for the year, $970,000. Sales for the year (all on account) totaled $2,200,000. These goods cost $1,000,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials Work in Process Finished Goods Required: $50,000 $41,000 $80,000 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.