Froya Fabrikker MS of Bergen, Norway, is a small company that 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 on the basis of direct labor- hours. 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: a. Raw materials purchased on account, $300,000. b. Raw materials used in production (all direct materials), $285,000. c. Utility bills incurred on account, $79,000 (80% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (950 hours) $ 330,000 Indirect labor $ 110,800 Selling and administrative salaries $ 210,000 e. Maintenance costs incurred on account in the factory, $74,000 f. Advertising costs incurred on account, $156,000. g. Depreciation was recorded for the year, $92,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $117,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied tojobs, $ ? j. Cost of goods manufactured for the year, $970,000. k. Sales for the year (all on account) totaled $2,200,000. These goods cost $1,000,000 according to theirjob cost sheets. The balances in the inventory accounts at the beginning ofthe year were: Raw Materials 5 5 Work in Process $ 41,000 Finished Goods $ 8 Required: 1. Preparejournal 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 for the year