Ravsten Company uses a job order costing system on lanuary 1, the beginning of the current year, the company's inventory balances were as follows ante os work in process Finished goods $ $11.19 33,50 The company naples overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36 500 machine hours and incur $164 250 in manufacturing over and cost. The following transactions were recorded for the year a Raw materials were purchased an account $210,000 Raw materials were requisitioned for use in production $195.000 B0% direct and 20% indirect) The following costs were incurred for employee services Direce la Indirect labour Sales Los Roninistrative salari 114, 52,00 11.50 $ 2.000 Heal power and water costs were incurred in the factory, 544 250 Prepaid insurance expired during the year $12.500 (85% relates to factory operations and 15% relates to selling and administrative activities Advertising costs were incurred, 552.500 9 Depreciation was recorded for the year $63000 1909 relates to factory operations, and 10%. Teates to selling and administrative activities Manufacturing overhead cost was applied to production. The company recorded 41000 machine hours for the year Next d. Heat power and water costs were incurred in the factory $44.250 e Prepaid insurance expired during the year $12.500 (85% relates to factory operations, and 15% relates to selling and administrative activities) Advertising costs were incurred. $52.500 g Depreciation was recorded for the year $63.000 (90% Tetatus to lactory operations, and 10% relates to selling and administrative activities Manufacturing overhead cost was apped to production. The company recorded 41000 machine hours for the year 1. Goods that cost $502000 to manufacture according to the lab cost sheets were transferred to the finished goods warehouse Sales for the year totaled 5723 300 and were all on account. The total cost to manufacture these goods according to the job cost sheets was $496,000 Required: 1. Prepare journal entries to record the transactions given above (Do not found intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field. View transaction ist Journal entry worksheet 4 5 2 6 7 8 11 Raw materials were purchased on account: $210,000. 5 2. Prepare accounts for inventores Manufacturing Ovechead and Cost of Goods Sold Post relevant data from your journal entries to theco Taccounts (dont forget to enter the opening balances in your inventory accounts. Commute an ending balance in each account Manufacturing Overhead Raw Material Beg 500 Eu Bal E B Cost Ooods Sold Work in Process e Bal Beg B Endal Finished Goods e - Lal 50 3-a. Is manufacturing overhead underapplied or overopplied for the year? TITE Underappised overhead Overapplied overhead 3.b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account (Do not round intermediate calculations and round your final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required in the first account field) View transaction list Journal entry worksheet 1 > Recor the entry to properly dispose of any balance in the Manufacturing Overhead account 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) RAVSTEN COMPANY Income Statement For the Year Ended December 31 Sening and advertir expenses D $ 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 $18, see $11,00 $30,5ee The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,500 machine-hours and incur $164,250 in manufacturing overhead cost. The following transactions were recorded for the year a Raw materials were purchased on account: $210,000. 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: Direct labour Indirect labour Sales commissions Administrative salaries $164, eee $ 28,eee $ 37,5ee $ 82, eee d. Heat power, and water costs were incurred in the factory: $44.250. e. Prepaid insurance expired during the year. $12,500 (85% relates to factory operations, and 15% relates to selling and administrative activities) 1. Advertising costs were incurred. $52,500. g. Depreciation was recorded for the year: $63,000 (90% relates to factory operations, and 10% relates to selling and administrative activities) recorded 41000 machine-hours for the year. h. Manufacturing overhead cost was applied to production. The company recorded 41000 machine-hours for the year I Goods that cost $502,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Sales for the year totalled $723,300 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $496.000. 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 fist Journal entry worksheet 3 1 4 2 8 5 11 6 7 Raw materials were purchased on account: $210,000 Note: Enter debits before credits Debit Credit Transaction General Journal 15 of 21 Next > 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these Taccounts (don't forget to enter the opening balances in your inventory accounts) Compute an ending balance in each account Raw Materials Manufacturing Overhead Beg Bal. Beg. Bat End. Bal 0 es nd. Bol 0 Work in Process Cost of Goods Sold Beg Bal Beg Bal End, Bal. 0 End Bal 0 Finished Goods Beg. Bal 0 End. Bal 3-a. 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. (Do not round intermediate calculations and round your final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry to properly dispose of any balance in the Manufacturing Overhead account Note: Enter debits before credits Event General Journal Debit Credit Record entry Check my Clear entry View general Journal 4. Prepare an income statement for the year. (Do not round Intermediate calculations and round your final answers to nearest whole dollar amount.) RAVSTEN COMPANY Income Statement For the Year Ended December 31 0 Selling and administrative expenses: 0 $ 0 D O