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 and 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 $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. the following transactions took place during the year (all purchases and services were acquired on account):
a. raw materials purchased for use in production, $295,000.
b. raw materials requisitioned for use in production (all direct materials), $280,000.
c. utility bills were incurred, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
d. salary and wage costs were incurred:
direct labor (890 hours) $325,000
indirect labor $109,000
selling and administrative salaries $205,000
e. maintenance costs were incurred in the factory, $73,000.
f. advertising costs were incurred, $155,000.
g. depreciation was recorded for the year, $91,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
h. rental cost incurred on buildings, $105,000 (85% related to factory operations, and the remainder related to selling and administrative facilities).
i. manufacturing overhead cost was applied to jobs, $ ? .
j. cost of goods manufactured for the year, $960,000.
k. sales for the year (all on account) totaled $2,150,000. these goods cost $990,000 according to their job cost sheets.
the balances in the inventory accounts at the beginning of the year were:
raw materials $49,000
work in process $40,000
finished goods $79,000
required: 1.prepare journal entries to record the above data. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)