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: The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,900 machine-hours and incur $151,600 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $238,000. b. Raw materials were requisitioned for use in production: $209,000 ( 90% direct and 10% indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $50,550. e. Prepaid insurance expired during the year: $19,500 (75\% relates to factory operations, and 25% relates to selling and administrative activities). f. Advertising costs were incurred, $59,500. g. Depreciation was recorded for the year: $71,400 (80\% relates to factory operations, and 20% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 43,800 machine-hours for the year. 1. Goods that cost $534,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Sales for the year totalled $788,400 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $525,800 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.) Journal entry worksheet Depreciation was recorded for the year: $71,400 ( 80% relates to factory operations, and 20% relates to selling and administrative activities). Note: Enter debits before credits. 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. \begin{tabular}{|l|r|r|} \hline \multicolumn{2}{|c|}{ Finished Goods } \\ \hline Beg. Bal. & & \\ \hline & & \\ \hline End. Bal. & 0 & \\ \hline \end{tabular} Book 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)