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 $17,000 $10,400 $30,200 The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36,200 machine-hours and incur $157,470 in manufacturing overhead cost. The following transactions were recorded for the year a Raw materials were purchased on account $204,000 b. Raw materials were requisitioned for use in production $192.000 (80% direct and 20% indirect) c The following costs were incurred for employee services Direct labour Indirect labour Sales commissions Administrative salaries $161,600 $ 27,400 $36,600 $ 30,00 a Heat, power and water costs were incurred in the factory $42.900 e Prepaid insurance expired during the year $11.000 (85% relates to factory operations, and 15% relates to selling and administrative activities) 1 Advertising costs were incurred, $51000 o Depreciation was recorded for the year $61.200 (90% relates to factory operations and 10% relates to selling and administrative activities). hManufacturing overhead cost was applied to production. The company recorded 40.400 machine hours for the year Goods that cost $488,700 to manufacture according to their job cost sheets were transferred to the finished goods warehouse 1 Sales for the year totalled $709 300 and were all on account. The total cost to manufacture these goods according to their job cost sheets was 5483,300 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.) 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