Ravsten Company uses a job-order costing system. On January 1, the beginaing of the current year, the company's inventsory balances were as follows: The company applies overhead cost to jobs on the basis of machine hours. For the current yeac the compary ostemated that it would work 36,000 machine-hours and incur $160,200 in manufacturing overhead cost. The following transactions were recerded for the yoac: a. Raw materials were purchesed on account $210,000. b. Rav matefials were requisitioned for use in production: $200.000 ( 80% direct and 20% indirect). c. The following costs were incurted for employee services: d. Heat, powet, and water costs were incurred in the factory: 544.000 e. Prepaid irsurance expled dueing the yoar $12,000 (90\% relates to factory operations, and 10 s relates to selling and adminiatrative activities). f. Advertiaing costs were incurred, $52,000. a Depreclation was recorded for the year $62.000 fa5\%, relates to factory operations, and 15s relates to selling and administrathe actiales) h. Mamifacturing overhead cost was appliod to production, The compary recorded 40.000 michine hous for the yoar: 1. Goods that cost $504,000 to manufacture according to theif Job cost aheets were trangferred to the finished goods warehouse. 1. Ssles for the year totalled $770.000 and were all en account. The totol cost to manufaccure the goods accetding to their jab col? sheets was $495,000 Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculotions. If no entry is required for a transactionvevent, select "No journal entry required" in the first account field.) Journal entry worksheet 2. Prepare T-accounts for invontonles, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from yout joumal entries to these F-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. 3-a. is manufacturing ovomead underappiod ot overappied for the year? Cverappled ovemhead Underappied owerhead 3-6. Prepare a journal entry to propenty dispose of ary baiance in the Manufacturing Overtiesd account, Repund yeur percentages and final answers to 2 decimal places. If no entry Is required for a tansection/event, select "No joumat entry required" in the first account fieide) Journal entry worksheet Recerd the ertry to properiy dispose of ony balance in the Mimidictunng overbead account. 4. Prepare an income statement for the year (Do not round intermedlate calculations and round your flnal answers to nearest whole dollar amount.)
