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 $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $290,000 b. Raw materials used in production (all direct materials), $275,000 c. Utility bills incurred on account, $77000(90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: $ 320,000 $ 108,000 200,000 Direct labor (970 hours) Indirect labor Selling and administrative salaries e. Maintenance costs incurred on account in the factory, $72,000 f Advertising costs incurred on account, $154,000. g. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $115,000 (80% related to factory facilities, and the rem ainder related to selling and administrative facilities) i. Manufacturing overhead cost was applied to jobs, $_? j. Cost of goods manufactured for the year, $950,000 k. Sales for the year (all on account) totaled $2.100,000. These goods cost $980,000 according to their job cost sheets The balances.in the inventory.accounts.at the beginning of the year were The balances in the inventory accounts at the beginning of the year were: $48,000 $ 39,000 78,000 Raw Materials Work in Process Finished Goods 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. Froya Fabrikker A/S Schedule of Cost of Goods Manufactured Direct materials Total raw materials available Materials used in production Total manufacturing costs Cost of goods manufactured