Froya Fabrlkker A$/$S of Bergen, Norway, manufactures speclalty heavy equipment for use in North Sea oll fields. The company uses a

job$-$order costing system that applies manufacturing overhead cost to jobs based on direct labor$-$hours. Its predetermined overhead

fate was based on a cost formula that estimated $$360,000$ of manufacturing overhead for an estimated allocation base of $900$ direct

abor$-$hours. The following transactions occurred during the year:

R$.$ Raw materlals purchased on account, $$200,000.$

e$.$ Raw materlals used In production $($all direct materials$),$ $$185,000.$

E$.$ Utility bills incurred on account, related to factory operations, and the remalnder related to selling and administratlve

activities$).$

d$.$ Accrued salary and wage costs:

e$.$ Maintenance costs Incurred on account in the factory, $$54,000.$

f$.$ Advertising costs incurred on account, $$136,000.$

Depreclation recorded for the year, $$95,000(80\%$ related to factory equipment, and the remalnder related to selling and

administrative equipment$).$

p$.$ Rental cost incurred on account, $$120,000(85\%$ related to factory faclilites, and the remainder related to selling and administratlve

facilitles$).$

I. Manufacturing overhead cost applied to jobs, :

Cost of goods manufactured, $$770,000.$

C$.$ Sales $($all on account$)$ totaled $$1,200,000.$ These goods cost $$800,000$ according to thelr job cost sheets.

The beginning balances In the Inventory accounts were:

Required:

Prepare journal entrles to record the preceding transactions.

Post your entries to T$-$accounts. $($Don$\text{'}$t forget to enter the beginning Inventory balances above.$)$

$3.$ Prepare a schedule of cost of goods manufactured.

$4$A$.$ Prepare a Journal entry to close any balance In the Manufacturing Overhead account to Cost of Goods Sold.

$4$B$.$ Prepare a schedule of cost of goods sold.

Prepare an Income statement.

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Prepare a schedule of cost of goods sold.