PROBLEM 3-26 Journal Entries: T-Accounts; Financial Statements North Sea oil fields. The company er A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in on the basis of dires, lpy uses a-job-order costing system and applies manufacturing overhead cost to jobs basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that 8360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following ansactions took place during the year (all purchases and services were sequired on account) 1. 2. 3, Raw materials were purchased for use in production, $200,000. Raw materials were requisitioned for use in production (all direct materials), $185,000. Utility bills were incurred, S70,000 (90% related to factory and administrative activities). Salary and wage costs were incurred: operations, and the remainder related to selling 4. Indirect labor Selling and administrative salaries$110,000 $90,000 5. Maintenance costs were incurred in the factory, $54,000 6. Advertising costs were incurred, $136,000. 7. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment) 8, Rental cost incurred on buildings, $120,000 (85% related to factory operations, and the remainder related to selling and administrative facilities). 9, Manufacturing overhead cost was applied to jobs, s ? 10. Cost of goods manufactured for the year, $770,000. 11. 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: $30,000 i Finished Goods . . . $60,000 Required 1. Prepare journal entries to record the preceding data. 2. Post your entries to T-accounts. (Don't forget to enter the beginning inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. 3. Prepare a schedule of cost of goods manufactured. 4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold