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 f Advertising costs incurred on account. $156,000 9 Depreciation was recorded for the year, $92.000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) In Rental cost incurred on account, $117000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) 1. Manufacturing overhead cost was applied to jobs. $ J. Cost of goods manufactured for the year. $970,000 h. Rental cost incurred on account, $17,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities) 1. Manufacturing overhead cost was applied to jobs, $ J. Cost of goods manufactured for the year. $970,000, k 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 $ 50,000 5.41,000 $ 80,000 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 of Goods Sold 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