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 36,000 machine-hours and incur $156,960 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $205,500. b. Raw materials were requisitioned for use in production: $195,500 (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: $43,100. e. Prepaid insurance expired during the year: $11,100 (90\% relates to factory operations, and 10% relates to selling and administrative activities). f. Advertising costs were incurred, $51,100. g. Depreciation was recorded for the year: $61,200 (85\% relates to factory operations, and 15% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. i. Goods that cost $493,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $738,500 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $486,000. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to neares vhole dollar amount.) Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. 3-a. Is manufacturing overhead underapplied or overapplied for the year? Overapplied overhead Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentages and final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits