Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a ob-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 abor-hours. The following transactions occurred during the year. Raw materials purchased on account, $200,000. Raw materials used in production (all direct materials), $185,000. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities). Accrued salary and wage costs: Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $110,000 Maintenance costs incurred on account in the factory. $54,000. f. Advertising costs incurred on account, $136,000. Depreciation recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). 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. $? Cost of goods manufactured, $770,000. 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: Raw Materials Work in Process Finished Goods Required: $ 30,000 $ 21,000 $ 60,000 Prepare journal entries to record the preceding transactions. 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. 4B. Prepare a schedule of cost of goods sold. 5. Prepare an Income statement.