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 $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. 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). i. 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. h. Rental cost incurred on account, $117,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $_?, j. Cost of goods manufactured for the year, $70,000. 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 $ 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. Req 1 Reg 2 Req3 Req 4A Req 4B Reg 5 Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet The raw materials were purchased for use in production, $300,000 on account. Note: Enter debits before credits. Credit Transaction a. General Journal Raw materials Accounts payable Debit 300,000 300,000 Record entry Clear entry View general journal