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 $22,000 $12,400 $31,200 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,200 machine-hours and incur $152,520 in manufacturing overhead cost. The following transactions were recorded for the year a. Raw materials were purchased on account $224,000. b. Raw materials were requisitioned for use in production: $202,000 (85% direct and 15% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour $169,600 $ 29,400 Sales commissions $ 39,600 Administrative salaries $ 84,800 d. Heat, power, and water costs were incurred in the factory: $47,400 e Prepaid insurance expired during the year $16,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). f. Advertising costs were incurred, $56,000. g. Depreciation was recorded for the year: $67,200 (75% relates to factory operations, and 25% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 42,400 machine-hours for the year. L Goods that cost $511,900 to manufacture according to their job cost sheets were transferred to the finished goods warehouse j. Sales for the year totalled $755,800 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $504,500 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.) View transaction list Journal entry worksheet < 1 4 5 6 7 8 9 10 11 > Goods that cost $511,900 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 Raw materials were purchased on account: $224,000. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal 2-a. Is manufacturing overhead underapplied or overapplied for the year? O Overapplied overhead O Underapplied overhead 2-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations and round your 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.) View transaction list Journal entry worksheet < A Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Event 1 General Journal Debit Credit Next > View transaction list Journal entry worksheet < A Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits.. Event 1 General Journal Debit Credit View general journal Record entry Clear entry