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 $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year:

1. Raw materials purchased on account, $275,000.
2. Raw materials used in production (all direct materials), $260,000.
3. Utility bills incurred on account, $74,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

Direct labor (1,100 hours)	$	305,000
Indirect labor	$	105,000
Selling and administrative salaries	$	185,000

5. Maintenance costs incurred on account in the factory, $69,000
6. Advertising costs incurred on account, $151,000.
7. Depreciation was recorded for the year, $87,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
8. Rental cost incurred on account, $112,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities).
9. Manufacturing overhead cost was applied to jobs, $?.
10. Cost of goods manufactured for the year, $920,000.
11. Sales for the year (all on account) totaled $1,950,000. These goods cost $950,000 according to their job cost sheets.

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

Raw Materials	$	45,000
Work in Process	$	36,000
Finished Goods	$	75,000

1. Journal Entries

In the books of Froya Fabrikker A/S:

Transaction / Event	General Journal	Debit	Credit
		$	$
a.	Raw Materials Inventory	275,000
	Accounts Payable		275,000
b.	Work in Process Inventory	260,000
	Raw Materials Inventory		260,000
c.	Manufacturing Overhead	70,300
	Utilities Expense	3,700
	Accounts Payable		74,000
d.	Work in Process Inventory	305,000
	Manufacturing Overhead	105,000
	Salaries Expense	185,000
	Salaries and Wages Payable		595,000
e.	Manufacturing Overhead	69,000
	Accounts Payable		69,000
f.	Advertising Expense	151,000
	Accounts Payable		151,000
g.	Manufacturing Overhead	69,600
	Depreciation Expense	17,400
	Accumulated Depreciation : Equipment		87,000
h.	Manufacturing Overhead	95,200
	Rent Expense	16,800
	Accounts Payable		112,000
i.	Work in Process Inventory ( $ 380,000 / 1,000 x 1,100)	418,000
	Manufacturing Overhead		418,000
j.	Finished Goods Inventory	920,000
	Work in Process Inventory		920,000
k.	Accounts Receivable	1,950,000
	Sales		1,950,000
	Cost of Goods Sold	950,000
	Finished Goods Inventory		950,000

Required:

1. Prepare journal entries to record the preceding transactions. COMPLETED ABOVE

HELP PLEASE WITH 2 AND 3

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

3. Prepare a schedule of cost of goods manufactured.