Froya Fabrikker A/S of Bergen, Norway, 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 based on direct labor-hours, its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions occurred during the year: a. Raw materials purchased on account, $200,000. b. Raw materials used in production (all direct materials), $185,000. c. Utility bills incurred on account, $70,000 ( 90% 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, $54,000. f. Advertising costs incurred on account, $136,000 9. Depreciation recorded for the year, $95,000 ( 80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $120,000 ( 85% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Manufacturing overhead cost applied to jobs, $ ? j. Cost of goods manufactured, $770,000. k. Sales (all on account) totaled $1,200,000. These goods cost $800,000 according to their job cost sheets. The beginning balances in the inventory accounts 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) 2. Post your enthes to T-accounts. Dont forget to enter Prepare journal entries to record the preceding transactions. Notes: If no entry is required for a transaction/event, select "No journal 1 The raw materials were purchased for use in production, $200,000 on account. 2 The raw materials used in production (all direct materials), $185,000. 3 Utility bills were incurred on account, $70,000(90% related to factory operations, and the remainder related to selling and administrative activities). 4 Salary and wage costs accrued were $230,000 (Direct labor), $90,000 (Indirect labor), $110,000 (Selling and administrative salaries). 5 Maintenance costs were incurred on account in the factory, $54,000. Note : = journal entry has been entered 6 Advertising costs were incurred on account, $136,000. 7 Depreciation was recorded for the year, $95,000(80% related to factory equipment, and the remainder related to selling and administrative equipment). 8 Entry for rental cost incurred on account on buildings, $120,000 ( 85% related to factory operations, and the remainder related to selling and administrative facilities). 9 Entry for manufacturing overhead cost applied to jobs. 10 Cost of goods manufactured for the year, $770,000. 11 Sales for the year (all on account) totaled $1,200,000. 12 These goods cost $800,000 according to their job cost sheets