Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, LO3-3, LO3.4] Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oll 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 $399,000 of manufacturing overhead for an estimated allocation base of 1.050 direct labor-hours. The following transactions took place during the year a Raw materials purchased on account. $280,000 b. Raw materials used in production (all direct materials). $265.000. Utility bills incurred on account $75,000 (80% related to factory operations, and the remainder related to selling and administrative activities) d. Accrued salary and wage costs: Direct labor (1,10 hours) Indirect labor Selling and administrative salaries $ 310,000 $ 105,000 $ 190,000 e Maintenance costs incurred on account in the factory $70.000 f. Advertising costs incurred on account, $152.000. g: Depreciation was recorded for the year, $88.000 (85% related to factory equipment, and the remainder related to selling and administrative equipment) h Rental cost incurred on account, $113,000 (90% related to factory facilities, and the remainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs, $_? J. Cost of goods manufactured for the year $930,000 k. Sales for the year (all on account) totaled $2,000,000. These goods cost $960,000 according to their job cost sheets, te to search O RE a **