Ravsten Company uses a job-order costing system. On January 1 , the beginning of the current year, the company's inventory balance: 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 $157,680 in manufacturing overhead cost. The following transactions were recorded for the year. a. Raw materials were purchased on account $206,500 b. Raw materials were requisitioned for use in production $196,500(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. $43,300. e Prepaid insurance explred during the year: $11,300(90% relates to factory operations, and 10% relates to selling ond administrative activities). f. Advertsing costs were incurred, $51,300. 9 Depreciation was recorded for the year. $61,500(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: 1. Goods that cost $495,600 to mang acture according to their job cost sheets were transferred to the finished goods warehouse Sales for the year totalled $745,500 and were all on account. The total cost to manufacture these goods according to theirjob cos sheets was $488,000 Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Raw materials were purchased on account: $206,500. Note: Enter debits before credits. 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 Finished Goods Is manufacturing overhead underapplied or overapplied for the year? Overapplied overhead Underapplied overhead Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest hole dollar amount.)