Problem $3-15($Static$)$ Journal Entries; T$-$Accounts; Financial Statements $[$LO$3-1,$ LO$3-2,$ LO$3-3,$ LO$3-4]$

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$),$ $$185,000.$

c$.$ Utility bills incurred on account, $$70,000(90\%$ 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, $$54,000.$

f$.$ Advertising costs incurred on account, $$136,000.$

g$.$ Depreciation was recorded for the year, related to factory equipment, and the remainder related to selling and