Problem 3-15 (Static) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LOB-3, L03-4] Froya Fabrikker AIS of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost tojobs based on direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $350,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions occurred 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) $ 230,000 Indirect labor $ 90,000 Selling and administrative salaries $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000. f. Advertising costs incurred on account, $136,000. 9. Depreciation 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). i. Manufacturing overhead cost applied to jobs, $ ? . j. Cost of goods manufactured, $770,000. k. Sales (all on account) totaled $1,200,000. These goods cost $800,000 according to theirjob cost sheets. The beginning balances in the inventory accounts were: Raw Materials 3 30,000 Work in Process 3 21,000 Finished Goods 5 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 ajournal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 43. Prepare a schedule of cost of goods sold. 5. Prepare an income statement. Ending Balance Beginning Balance Ending Balance Ending Balance Ending Balance Ending Balance Beginning Balance Ending Balance Ending Balance Ending Balance