Problem 5-19 Journal Entries; T-Accounts; Cost Flows [LO4, LO5, LO7] Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory were as follows: Raw materials Work in process Finished goods The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that work 36,000 machine-hours and incur $157,320 in manufacturing overhead cost. The following transactions were recorded f year: $ 17,200 $11,200 $ 32,400 a. Raw materials were purchased on account: $206,000. b. Raw materials were requisitioned for use in production: $196,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $166,000 $ 28,200 $ 37,200 $ 82,400 d. Heat, power, and water costs were incurred in the factory: $43,200. e. Prepaid insurance expired during the year: $11,200 (90% relates to factory operations, and 10% relates to selling and admin activities). f. Advertising costs were incurred, $51,200. g. Depreciation was recorded for the year: $61,200 (85% relates to factory operations, and 15% relates to selling and administ activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. i. Goods that cost $494,400 to manufacture according to their job cost sheets were transferred to the finished goods wareho j. Sales for the year totalled $742,000 and were all on account. The total cost to manufacture these goods according to their sheets was $487,000.

Journal entry worksheet 1) 2 (3) 4 Advertising costs were incurred, $51,200. Note: Enter debits before credits. Journal entry worksheet (1) 2 Heat, power, and water costs were incurred in the factory: $43,200. Note: Enter debits before credits. Journal entry worksheet (1) 4 5 6 7 8 9 Sales for the year totalled $742,000 and were all on account. Note: Enter debits before credits. Problem 5-19 Journal Entries; T-Accounts; Cost Flows [LO4, LO5, LO7] Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventor were as follows: The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated tha work 36,000 machine-hours and incur $157,320 in manufacturing overhead cost. The following transactions were recorded f year: a. Raw materials were purchased on account: $206,000. b. Raw materials were requisitioned for use in production: $196,000(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: $43,200. e. Prepaid insurance expired during the year: $11,200 ( 90% relates to factory operations, and 10\% relates to selling and admir activities). f. Advertising costs were incurred, $51,200. 9. Depreciation was recorded for the year: $61,200 (85\% relates to factory operations, and 15% relates to selling and administ activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. i Goods that cost $494,400 to manufacture according to their job cost sheets were transferred to the finished goods wareho j. Sales for the year totalled $742,000 and were all on account. The total cost to manufacture these goods according to their sheets was $487,000. Journal entry worksheet (1) 4 5 6 7 9 The total cost to manufacture these goods according to their job cost sheets was $487,000. Note: Enter debits before credits. Journal entry worksheet 1 2 4 5 Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. Note: Enter debits before credits. Journal entry worksheet (1) 2 4 5 8 Depreciation was recorded for the year: $61,200 ( 85% relates to factory operations, and 15% relates to selling and administrative activities). Note: Enter debits before credits. Journal entry worksheet 1. 4 5 6 7 Record the costs that were Incurred for employee services. Note: Enter debits before credits. Journal entry worksheet 1 8 11 Prepaid insurance expired during the year: $11,200 ( 90% relates to factory operations, and 10% relates to selling and administrative activities). Note: Enter debits before credits. Journal entry worksheet (1) 4 7 8 11 Goods that cost $494,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Note: Enter debits before credits