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Froya Fabrikker AsS of Bergen, Norway, is a small company that manufactures specially heavy equipment for use in North Sea oil fields. The company uses

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Froya Fabrikker AsS of Bergen, Norway, is a small company that manufactures specially heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing ovethead cast to jobs on the basls of direct loborhours: its predetermined overhead rate was based on a cost formula that estimated $382,500 of manufacturing overhead for an estimated allocation base of 850 direct labor-hours. The following transactions took place during the year: 3. Raw materials purchased on account $300,000 b. Raw materials used in production (all direct materials) $285.000 c. Utaity bills incurred on account, $79,000/80% related to factory operations, and the remainder related to selting and adiministrative activities). d. Accrued salary and wage costs: e. Maintenance costs incuared on account in the factory. $74,000 t. Advertising costs incurred on account, $156,000 g. Depretiation was recorded for the year, $92,000 (80\% related to factory equipment, and the remainder reloted to selling and administrative equipment) h. Rental cost incurred on account, $117,000185% related to factory fachitles, and the remalnder related to selling and administrative facilities). 1. Mamufacturing overhead cost was applied to jobs, $ ? 1. Cost of goods manufactured for the year. $970,000. k. Sales for the year (all on account) totaled $2200,000. These goods cost $1,000,000 according to their job cost sheets. The balances in the inventorv accounts at the beginning of the vear were: The balances in the inventory accounts at the beginning of the year 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.) 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 for the year. Complete this question by entering your answers in the tabs below. Prepare journal entries to recond the preceding transactions. (If no entry is recuired for a transaction/event, select "No journal ents required in the first account field.)

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