Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ? Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use inNorth Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs onthe basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $370,500of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions tookplace during the year:a. Raw materials purchased on account, $270,000.b. Raw materials used in production (all direct materials), $255,000.c. Utility bills incurred on account, $73,000 (90% related to factory operations, and the remainder related to selling andadministrative activities).d. Accrued salary and wage costs:Direct labor (1,030 hours)Indirect laborSelling and administrativesalariese. Maintenance costs incurred on account in the factory, $68,000f. Advertising costs incurred on account, $150,000.g. Depreciation was recorded for the year, $86,000 (75% related to factory equipment, and the remainder related toselling and administrative equipment).h. Rental cost incurred on account, $111,000 (80% related to factory facilities, and the remainder related to selling andadministrative facilities).i. Manufacturing overhead cost was applied to jobs, $_?.j. Cost of goods manufactured for the year, $910,000.k. Sales for the year (all on account) totaled $1,900,000. These goods cost $940,000 according to their job cost sheets.The balances in the inventory accounts at the beginning of the year were:Raw Materials$ 44,000Work in Process $ 35,000Finished Goods $ 74,000Required: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 a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.4B. Prepare a schedule of cost of goods sold.5. Prepare an income statement for the year.$ 300,000$ 104,000$ 180,000Complete this question by entering your answers in the tabs below.Req 1Req 2 Req 3 Req 4A Req 4B Req 5Prepare journal entries to record the preceding transactions. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet< 1 2 3 4 5The raw materials were purchased for use in production,$270,000 on account.Note: Enter debits before credits.Transactiona.6 7 8General Journal12Debit Credit>

Name: Please explain proper steps by Step and Do Not Give Solution In Image
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Description: Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ? Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use inNorth Sea oil fields. The compa

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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 $370,500 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $270,000. b. Raw materials used in production (all direct materials), $255,000. c. Utility bills incurred on account, $73,000 (90% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: