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Froya Fabrikker A/S of Bergen, Norway, manulactures specialty heavy equipment for use in North Sea oil fields. The company uses a job order costing system

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Froya Fabrikker A/S of Bergen, Norway, manulactures 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 $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions occurred during the year: a. Raw materials purchased on account, $255,000. b. Raw materials used in production (all direct materials), $240,000. c. Utility bills incurred on account, $70,000 ( 95% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: e. Maintenance costs incurted on account in the factory, $65,000 f. Advertising costs incurred on account, $147,000. g. Deprectation recorded for the year, $83,000(80% related to factory equipment. and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $108,000 ( 85% related to factory facilities, and the remainder related to selling and administrative facilities). 1. Marufacturing ovethead cost applled to jobs, \$ ? 1. Cost of goods manufactured, $880,000 k Siles for the year (all on account) fotaled $1.750,000. These goods cost $910,000 according to their job cost sheets. 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. 4B. Prepare a schedule of cost of goods sold. 5. Prepare an income statement. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured. Prepare a schedule of cost of goods manufactured. Froya Fabrikker AS Required 2 Required 4A

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