\fRaw materials were requisitioned for use in production: $192,000 (80% direct and 20% indirect). Prepaid insurance expired during the year: $11,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). \fDepreciation was recorded for the year: $61,200 (90% relates to factory operations, and 10% relates to selling and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 40,400 machine-hours for the year. Goods that cost $488,700 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.\fThe total cost to manufacture these goods according to their job cost sheets was $483,300. Ravsten Company uses ajoborder costing system. On January 'I, the beginning of the current year, the company's inventory balances were as follows: Raw materials $17,666 work in process $16,466 Finished goods $36,266 The company applies overhead cost tojobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,200 machine-hours and incur $157,470 in manufacturing overhead cost. The following transactions were recorded for the year a. Raw materials were purchased on account: $204,000. b. Raw materials were requisitioned for use in production: $192,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour $161,666 Indirect labour $ 27,466 Sales commissions $ 36,666 Administrative salaries $ 86,866 Direct labour $161,699 Indirect labour $ 27,486 Sales commissions $ 36,699 Administrative salaries $ 86,886 d. Heat, power, and water costs were incurred in the factory: $42,900. e. Prepaid insurance expired during the year: $11,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). f. Advertising costs were incurred, $51,000. 9. Depreciation was recorded for the year: $61,200 {90% relates to factory operations, and 10% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,400 machine-hours for the year. i. Goods that cost $488,700 to manufacture according to theirjob cost sheets were transferred to the nished goods warehouse. j. Sales for the year totalled $709,300 and were all on account. The total cost to manufacture these goods according to theirjob cost sheets was $483,300. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
