Froya Fabrikker NS 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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year a. Raw materials purchased on account, $200,000 b Raw materials used in production (all direct materials). 185,000 c. Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder related to selling and administrative activities) d Accrued salary and wage costs. Direct labor (975 hours) Indirect labor Selling and administrative salaries $ 230,00 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f Advertising costs incurred on account, $136,000 9. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) h. 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 was applied to jobs, $_2 Cost of goods manufactured for the year. $710.000 k Sales for the year (all on account) totaled $1.200,000 These goods cost $800,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: The balances in the inventory accounts at the beginning of the year were Raw Materials Work in Process Finished Goods $ 30,000 $ 21,000 $ 60,000 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 48. 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. Req1 Reg 2 Rega Reg 1 Req 10 Reg 5 Prepare journal entries to record the preceding transactions. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet The raw materials were purchased for use in production, $200,000 on account. Note Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record the preceding transactions. (If no entry is required for a transe required in the first account field.) View transaction list Journal entry worksheet Salary and wage costs accrued were $230,000 (Direct labor), $90,000 (Indirect labor), $110,000 (Selling and administrative salaries). Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal required" in the first account field.) View transaction list Journal entry worksheet Maintenance costs were incurred on account in the factory, $54,000. Note: Enter debits before credits. Transaction General Journal Debit Credit e Record entry Clear entry View general journal View transaction list Journal entry worksheet Advertising costs were incurred on account, $136,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 12 Cost of goods manufactured for the year, $770,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet These goods cost $800,000 according to their job cost sheets. Note: Enter debits before credits. Transaction General Journal Debit Credit k(2) Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Accounts Receivable Sales Beg, Bal Beg. Bal End. Bal End. Bal Raw Materials Cost of Goods Sold Beg Bal Beg. Bal End, Bal End. Bal Work in Process Manufacturing Overhead Beg Bal Beg Bal End Bal End Bal View transaction list Journal entry worksheet Req 1 Reg 2 Reg 3 Req 4A Req 4B Reg 5 Prepare an income statement for the year. Froya Fabrikker A/S Income Statement For the Year Ended Selling and administrative expenses