pt $2$ & $3$

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Froya Fabrikker A$/$S 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 to jobs based on direct labor$-$hours. Its predetermined overhead rate was based on a cost formula that estimated $$378,000$ 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, $$285,000.$

b$.$ Raw materials used in production $($all direct materials$),$ $$270,000.$

c$.$ Utility bills incurred on account, $$76,000(85\%$ related to factory operations, and the remainder related to selling and administrative activities$).$

d$.$ Accrued salary and wage costs:e$.$ Maintenance costs incurred on account in the factory, $$71,000$f$.$ Advertising costs incurred on account, $$153,000.$g$.$ Depreciation recorded for the year, $$89,000(70\%$ related to factory equipment, and the remainder related to selling and administrative equipment$).$h$.$ Rental cost incurred on account, $$114,000(75\%$ related to factory facilities, and the remainder related to selling and administrative facilities$).$i$.$ Manufacturing overhead cost applied to jobs, $ $?$ qquadj. Cost of goods manufactured, $$940,000.$k$.$ Sales for the year $($all on account$)$ totaled $$2,050,000.$ These goods cost $$970,000$ according to their job cost sheets.

The beginning balances in the inventory accounts were:

Raw Materials

S $47\mathrm{.}000$