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. S77.000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (970 hours) Indirect labor $320,000 $108,80e Selling and administrative salaries $200,00 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 remainder related to selling and administrative facilities) i. Manufacturing overhead cost was applied to jobs, $ 2 k. Sales for the year (ail on account) totaled $2.100,000. These goods cost $980.000 according to their job cost sheets Coes forthey mars $2200000 These gods cost $980.00o according to theli job cost sheets The balances in the inventory accounts at the beginning of the year were Ran Materials Work in Process Finished Goods $48,000 $39,900 $78,e09 Requiredl: 1. Prepare journal entries to record the preceding transactions. 2 Post your entries to T-sccounts. Don't forget to enter the beginning inventory bal ances above) 3. Prepare a schedu'e of cost of goods manufactured 4A. Prepare a journsl 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