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 $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year:a. Raw materials purchased on account, $290,000.b. Raw materials used In production (all direct materials), $275,000.c. Utility bills incurred on account, $77,000 (90% related to factory operations, and the remainder related to selling and administrative activities).d. Accrued salary and wage costs:Direct labor (970 hours) $320,000Indirect labor $108,000Selling and administrative salaries $200,000e. Maintenance costs incurred on account in the factory, $72,000.f. Advertising costs incurred on account, $154,000.g. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment)h. Rental cost incurred on account, $115,000 (80% related to factory facilities, 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, $950,000.k. Sales for the year (ail on account) totaled $2.100.000. These goods cost $980.000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were:Raw Materials $48,000Work in Process $39,000Finished Goods $78,000Required: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.