2 Check my Ravsten Company uses a job-order costing system on January t the beginning of the current year, the company's inventory balances were as follows 30 Doint Ra materials Work in process Finished goods $18,000 $10,000 ebook The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36.400 machine hours and incur $161.980 in manufacturing overhead cost The following transactions were recorded for the year. References a Raw materials were purchased on account 208.000 b. Raw materials were requisitioned for use in production 5194000 (80% direct and 20% indirect) c. The following costs were incurred for employee services: Direct labour Indirect labour Sales comissions Administrative salaries $153.100 $ 27,000 2 Check my work DO or d Heat power and water costs were incurred in the factory 543,800 e. Prepaid insurance expired during the year $12.000 (85% relates to factory operations, and 15% relates to Seling and administrative activities) Advertising costs were incurred $52.000 9 Depreciation was recorded for the year 562.400 (90relates to factory operations, and 10% relates to seling and administrative activities) Manufacturing overhead cost was applied to production. The company recorded 40.800 machinebours for the year Goods that cost $497.600 to manufacture according to the job cost sheets were transferred to the finished goods warehouse Sales for the year toated 5748 600 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $491800 Required Prepare ouma entries to record the transactions given above (Do not round intermediate calculations, no enty is required for transaction/event, select "No journal entry required in the first account field) Journal entry worksheet 2 View transactions Journal entry worksheet 30 po + 2 5 6 7 8 11 look Raw materials were purchased on account: $200,000 Note Entered before credite Transaction General Journal Deba Credit ked my Check 2 2. Prepare l-accounts for inventories. Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts) Compute an ending balance in each account 30 Raw Materials Manufacturing Overhead Beg Bal Beg Bal book End Ball End Bal Work in focess Cost of Goods Sold Beg Bal Bog En a Finished Good Beta my work 2 Finished Goods Bag Ball DOS End, Bal 3-a. Is manufacturing overhead underapplied or overapplied for the year? Unde applied overtad Overapplied overhead 3-6: Prepare a journal entry to properly dose of any balance in the Manufacturing Overhead account (Do not round intermediate calculations and round your final answers to 2 decimal places, I no entry is required for a transaction/event, select "No journal entry required in the first account field) 2 Journal entry worksheet 30 point Record the entry to property dispose of any balance in the Manufacturing Overhead account Book Note Enter debts bore che References Event 1 General Journal Dobit Credit Record entry Clear entry View general Journal 2 4. Prepare an income statement for the year (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) 30 Don RAVSTEN COMPANY Income Statement For the Year Ended December 31 Pint References Selling and administrative expenses