QUESTION 3 & 4

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: Raw materials Work in process Finished goods $23,500 $10,360 $31,080 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,500 machine-hours and incur $159,375 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $230,000 b, Raw materials were requisitioned for use in production: $205,000 (85% direct and 15% indirect). c. The following costs were incurred for employee services Direct labour Indirect labour Sales commissions Administrative salaries $172,000 $ 30,000 $ 40,500 $ 86,000 d. Heat, power, and water costs were incurred in the factory: $48,750 e. Prepaid insurance expired during the year: $17,500 (80% relates to factory operations, and 20% relates to selling and administrative activities) f. Advertising costs were incurred, $57,500 g. Depreciation was recorded for the year: $69,000 (75% relates to factory operations, and 25% relates to h. Manufacturing overhead cost was applied to production. The company recorded 43,000 machine-hours i. Goods that cost $525,500 to manufacture according to their job cost sheets were transferred to the j. Sales for the year totalled $770,000 and were all on account. The total cost to manufacture these goods selling and administrative activities). for the year finished goods warehouse according to their job cost sheets was $518,000 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Raw materials 230,000 Microsoft Accounts payable 230,000