Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Ses oil fields. The company uses s 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 $374,000 of manufacturing overhead for an estimated allocation base of 1300 direct labor-hours. The following transactions occurred during the year a. Raw materials purchased on account, $235,000. b. Raw materials used in production (all direct materials), $220,000. c. Utility bills incurred on account. $66,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs Direct labor (1,175 hours) Indirect labor Selling and administrative salaries $205,000 $ 97,000 $145,000 e. Maintenance costs incurred on account in the factory, $61.000 Advertising costs incurred on account, $143.000 9. Depreciation recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. Rental cost incurred on account, $116.000 (85% related to factory facates, and the remainder related to selling and administrative facilities). L Manufacturing overhead cost applied to jobs, S Cost of goods manufactured, $840,000 k. Sales for the year (all on account) totaled $1,550,000. These goods cost $870,000 according to their job cost sheets The beginning balances in the inventory accounts were Raw Materials Work in Process Finished Goods Required: $ 37,000 $ 28,000 $ 67,000 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.