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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $260,000 b. Raw materials used in production (all direct materials). $245,000 c. Utility bills incurred on account, $71,000 (80% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct labor (1,695 hours) Indirect labor Selling and administrative salaries $ 290,000 $ 102,000 $ 170,000 e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84.000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h Rental rnct incurreri on account $109 00 180% relatorita farton facilities and the remainder related to selling and administrative Prey 1 of 1 2 Next to search H L 09 50% RAD4- 7:05 PM 9/5/2019 - e. Maintenance costs incurred on account in the factory, $66,000 f. Advertising costs incurred on account, $148,000. g. Depreciation was recorded for the year, $84,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $109,000 (80% 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. $890,000 k. Sales for the year (all on account) totaled $1,800,000. These goods cost $920,000 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 $ 42,000 $ 33,000 $ 72,000 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. AD Drenasrnin nfcnet of Android Prey 1 of 1 Next > earch . LO 9 50% P A D 7:06 PM 9/5/2019 We Req 4A Req 4B Reg 5 Prepare a schedule of cost of goods sold. Froya Fabrikker A/S Schedule of Cost of Goods Sold Prev 1 of 1 * Next > earch An LO90 50% R ^_000