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 laborhours. Its predetermined overhead rate was based on a cost formula that estimated $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $210,000. b. Raw materials used in production (all direct materials), $195,000. c. Utility bills incurred on account, $61,000(95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: e. Maintenance costs incurred on account in the factory, $56,000 1. Advertising costs incurred on account, $138,000. g. Depreclation was recorded for the year, $86,000(75% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $111,000(80% related to factory facilities, and the remainder related to selling andhdministrative facilities). 1. Manufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year, $790,000. k. Sales for the year (all on account) totaled $1,300,000. These goods cost $820,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: 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. 48. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{c|}{ Sales } \\ \hline Beginning Balance & & Credit \\ \hline & & & \\ \hline & & & \\ \hline Ending Balance & & \\ \hline \multicolumn{1}{|c|}{} & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{} & \multicolumn{1}{|c|}{ Raw Materials } \\ \hline \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{|c|}{ Credit } \\ \hline Beginning Balance & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Ending Balance & & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Cost of Goods Sold } \\ \hline \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{|c|}{ Credit } \\ \hline Beginning Balance & & \\ \hline & & \\ \hline & & \\ \hline Ending Balance & & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Manufacturing Overhoad } \\ \hline \multicolumn{1}{|c|}{ Debit } & & \\ \hline & & \multicolumn{2}{|c|}{ Citdit } \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline Endinning Balance & & \\ \hline & & \\ \hline Debilance & & \\ \hline & & \\ \hline & & \\ \hline Endinging Balance Balance & & \\ \hline \end{tabular} 4 \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Aceumulated Depreciation } \\ \hline \multicolumn{1}{|c|}{ Debit } & & \\ \hline Beginning Balance & & \\ \hline & & \\ \hline & & \\ \hline Ending Belance & & \\ \hline & & \\ \hline & Accounts Payabies \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Accounts Payable } \\ \hline \multicolumn{1}{|c|}{ Debit } & \multicolumn{2}{|c|}{ Credit } \\ \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Ending Balance & & & \\ \hline \end{tabular} Depreciation Expense \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Depreciation Expense } \\ \hline Beginning Balance & & \multicolumn{2}{|c|}{ Credit } \\ \hline & & & \\ \hline & & & \\ \hline Ending Balance & & & \\ \hline & & \\ \hline \end{tabular} Rent Expense \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{|c|}{ Credit } \\ \hline Beginning Balance & & & \\ \hline & & & \\ \hline Ending Balance & & & \\ \hline & & \\ \hline \end{tabular}