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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $260,000. b. Raw materials used in production (all direct materials), $245,000. c. Utility bills incurred on account, $71,000 (80% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (1,095 hours) Indirect labor $ 290,000 Selling and administrative salaries $ 102,000 $170,000 e. Maintenance costs Incurred on account In the factory, $66,000 f. Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84.000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $109,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost was applied to jobs, $? JCost of goods manufactured for the year. $890,000. k Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 according to their job cost sheets. The balances in the Inventory accounts at the beginning of the year were: Raw Materials Mork in Process Finished Goods $ 42,000 $ 33,000 $ 72,000 Required: 1. Prepare journal entries to record the preceding transactions.