Saved Problem 3-15 (Static) 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 oil 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 $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on account, $200,000 b. Raw materials used in production (all direct materials). S185,000. c Utility bills incurred on account, $70,000 (90% related to factory operations, and the remainder rela activities) d. Accrued salary and wage costs: to selling and administrative Direct Labor (975 hours) Indirect labor Selling and administrative salaries $ 230,000 $ 90,000 $ 110,000 e. Maintenance costs incurred on account in the factory, $54,000 Advertising costs incurred on account, $136.000 9 Depreciation was 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) Manufacturing overhead cost was applied to jobs. S_? Cost of goods manufactured for the year, $770,000 k. Sales for the year (all on account totaled $1200,000. These goods cost $800.000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Materials Work in Process Finished Goods $ 30,000 5 21.000 $ 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)