Ravsten Company uses a job-order costing system. On January 1, the beginning of the curtent yeat, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine-houis. For the current year, the company estimated that it would work 36,600 machine-hours and incur $166,530 in manufacturing overhead cost. The following transactions were recorded for the year. a. Raw materials were purchased on account: $212.000 b. Raw materiah were requisitioned for use in production: $196,000 (80n, direct and 205 indirect). c. The following costs were incurred for employee services a. Heat, power, and water costs were incuifed in the factory. $44.700 e. Prepaid insurance expired duning the year: $13,000(85% ielates fo faciory operations, and 15% relates to setling and adiainistrative activities) 1. Advertising conts wele incutred, 553,000 . 0. Oepreciation was recorded for the year: $63.600 (90\% relotes to factory operations, and 10n, relates to seilling and adrininisfrative d. Heat, power, and water costs were incurred in the factory: $44,700. e. Prepaid insurance explired during the year: $13,000 (85\% relates to factory operations, and 15% relates to selling and administrative activities). f. Advertising costs were incurred, $53,000. 9. Depreciation was recorded for the year: $63,600(90% relates to factory operations, and 10% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 41,200 machine-hours for the year: 1. Goods that cost $506,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 1. Sales for the year totalled $727.900 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $500,300. Required: 1. Prepare joumal entries to record the transactions given above. (Do not round intermediote calculations. If no entry is required for o trensaction/event, select "No journol entry required" in the first occount field.) 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. 3-a. Is manufacturing overhead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead 3-b. Prepare a joumal entry to properly dispose of any balance in the Manufacturing Overtiead account. (Do not round intermediate calculotions ond round your final answers to neorest whole dollar amount. If no entry is required for a transoction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to properiy dispose of any balance in the Manufacturing Overheod account. Note: renter debis before brecita. 4. Prepare an income statement for the year. (Do not round intermediote calculations and round your finol answers to neorest whole doller amount.) Ravsten Company uses a job-order costing system. On January 1, the beginning of the curtent yeat, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine-houis. For the current year, the company estimated that it would work 36,600 machine-hours and incur $166,530 in manufacturing overhead cost. The following transactions were recorded for the year. a. Raw materials were purchased on account: $212.000 b. Raw materiah were requisitioned for use in production: $196,000 (80n, direct and 205 indirect). c. The following costs were incurred for employee services a. Heat, power, and water costs were incuifed in the factory. $44.700 e. Prepaid insurance expired duning the year: $13,000(85% ielates fo faciory operations, and 15% relates to setling and adiainistrative activities) 1. Advertising conts wele incutred, 553,000 . 0. Oepreciation was recorded for the year: $63.600 (90\% relotes to factory operations, and 10n, relates to seilling and adrininisfrative d. Heat, power, and water costs were incurred in the factory: $44,700. e. Prepaid insurance explired during the year: $13,000 (85\% relates to factory operations, and 15% relates to selling and administrative activities). f. Advertising costs were incurred, $53,000. 9. Depreciation was recorded for the year: $63,600(90% relates to factory operations, and 10% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 41,200 machine-hours for the year: 1. Goods that cost $506,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 1. Sales for the year totalled $727.900 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $500,300. Required: 1. Prepare joumal entries to record the transactions given above. (Do not round intermediote calculations. If no entry is required for o trensaction/event, select "No journol entry required" in the first occount field.) 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. 3-a. Is manufacturing overhead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead 3-b. Prepare a joumal entry to properly dispose of any balance in the Manufacturing Overtiead account. (Do not round intermediate calculotions ond round your final answers to neorest whole dollar amount. If no entry is required for a transoction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to properiy dispose of any balance in the Manufacturing Overheod account. Note: renter debis before brecita. 4. Prepare an income statement for the year. (Do not round intermediote calculations and round your finol answers to neorest whole doller amount.)