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 $342,000 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions occurred during the year:

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production (all direct materials), $195,000.
3. Utility bills incurred on account, $61,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

Direct labor (1,025 hours)	$ 240,000
Indirect labor	$ 92,000
Selling and administrative salaries	$ 120,000

1. Maintenance costs incurred on account in the factory, $56,000
2. Advertising costs incurred on account, $138,000.
3. Depreciation recorded for the year, $86,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment).
4. Rental cost incurred on account, $111,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities).
5. Manufacturing overhead cost applied to jobs, $?question mark.
6. Cost of goods manufactured, $790,000.
7. Sales for the year (all on account) totaled $1,300,000. These goods cost $820,000 according to their job cost sheets.

The beginning balances in the inventory accounts were:

Raw Materials	$ 32,000
Work in Process	$ 23,000
Finished Goods	$ 62,000

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Dont forget to enter the beginning inventory balances above.)