answer 22

Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur \\( \\$ 156,600 \\) in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: \\( \\$ 205,000 \\). b. Raw materials were requisitioned for use in production: \\( \\$ 195,000 \\) (80\\% direct and \20 indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: \\( \\$ 43,000 \\). e. Prepaid insurance explred during the year: \\( \\$ 11,000(90 \\% \\) relates to factory operations, and \10 relates to selling and administrative activities). f. Advertising costs were incurred. \\( \\$ 51,000 \\). 9. Depreciation was recorded for the year: \\( \\$ 61,500185 \\% \\) relates to factory operations, and \15 relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. i. Goods that cost \\( \\$ 492,000 \\) to manufacture according to their job cost shects were transferred to the finished goods warehouse. j. Sales for the year totalled \\( \\$ 735,000 \\) and were all on account. The total cost to manufacture these goods according to their job cost sheets was \\( \\$ 485,000 \\). Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate colculations. If no entry is required for o transoction/event, select \"No journal entry required\" in the first occount field.) 2. Prepare T-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. 3-0. Is manufacturing overhead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentages and final onswers to 2 decimol ploces. If no entry is required for o transoction/event, select \"No journal entry required\" in the first occount field.) Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. 4. Prepare an income statement for the year. (Do not round intermediote colculations and round your final answers to nearest whole dollar omount.)