Chapter 50 3 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: 40 Raw materials pons Work in process Finished goods A $22.500 $12,600 $31,300 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37.300 machine-hours and incur $154,795 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account $226,000. b. Raw materials were requisitioned for use in production: $203,000 (85% direct and 15% indirect) c. The following costs were incurred for employee services: Direct labour Indirect labour sales commissions Administrative salaries $170,400 $29,600 $ 39,900 $85,200 d. Heat, power, and water costs were incurred in the factory: $47,850 e. Prepaid insurance expired during the year: $16,500 (80% relates to factory operations, and 20% relates to selling and administrative activities). f Advertising costs were incurred, $56,500. g. Depreciation was recorded for the year: $67.800 (75% relates to factory operations, and 25% relates to selling and administrative Help Save & Exit Submit Check my work