Ravsten Company uses a job-order costing system. On January 1, the beginning of the curren were as follows: Raw materials Work in process Finished goods The company applies overhead cost to jobs on the basis of machine-hours. For the current ye work 36,000 machine-hours and incur $157,320 in manufacturing overhead cost. The followin year: $17,200 $11,200 $32,400 a. Raw materials were purchased on account: $206,000. b. Raw materials were requisitioned for use in production: $196,000 (80% direct and 20% indi c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $166,000 $ 28,200 $ 37,200 $ 82,400 d. Heat, power, and water costs were incurred in the factory: $43,200. e. Prepaid insurance expired during the year: $11,200 (90% relates to factory operations, and 1 activities). f. Advertising costs were incurred, $51,200. g. Depreciation was recorded for the year: $61.200 (85% relator to

To these l-accounts (don't forget to enter the opening balances in your inut docount. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company work 36,000 machine-hours and incur $157,320 in manufacturing overhead cost. The following transactions we year: a. Raw materials were purchased on account: $206,000. b. Raw materials were requisitioned for use in production: $196,000 (80\% direct and 20% indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $43,200. e. Prepaid insurance expired during the year: $11,200 ( 90% relates to factory operations, and 10% relates to selli activities). f. Advertising costs were incurred, $51,200. a. Depreciation was recorded for the vear: $61,200 (85\% relates to factory operations, and 15% relates to selling -a. Is manufacturing overhead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Ro id final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal count field.) Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. 4. Prepare an income statement for the year. (Do not round intermediats whole dollar amount.) Raw materials were purchased on account: $206,000. Note: Enter debits before credits. d. Heat, power, and water costs were incurred in the factory: $43,200. e. Prepaid insurance expired during the year: $11,200 (90\% relates to factory operations, and 10% relates to sellir activities). f. Advertising costs were incurred, $51,200. g. Depreciation was recorded for the year: $61,200 (85\% relates to factory operations, and 15% relates to selling activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for th i. Goods that cost $494,400 to manufacture according to their job cost sheets were transferred to the finished j. Sales for the year totalled $742,000 and were all on account. The total cost to manufacture these goods accor sheets was $487,000. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no a transaction/event, select "No journal entry required" in the first account field.)