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 $18,000 $12,000 $34,000 The company applies overhead cost to jobs on the basis of nachine-hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur $160,200 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $210,000. b. Raw materials were requisitioned for use in production: $200,000 (80% direct and 20% Indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour $170,000 $ 29,000 Direct labour $170,000 Indirect labour $ 29,000 Sales commissions $ 38,000 Administrative salaries $ 84,000 d. Heat, power, and water costs were incurred in the factory $44,000. e. Prepaid Insurance expired during the year: $12,000 (90% relates to factory operations, and 10% relates to selling and administrative activities). f. Advertising costs were incurred, $52,000. g. Depreciation was recorded for the year: $62,000 (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 $504,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Sales for the year totalled $770,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $495,000. 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.) No 1 Transaction a. Raw materials Accounts payable 2 b. 3 C. Answer is not complete. General Journal Work in process Manufacturing overhead Raw materials Work in process Manufacturing overhead Sales commissions expense Administrative salaries expense Onlen 100 1600 Debit 210,000 Credit 210,000 156,000 39,000 195,000 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 Beg. Bal.. Raw Materials 18,000 End. Bal. 18,000 Answer is not complete. Beg Bal Manufacturing Overhead End. Bal. 0 Work in Process Cost of Goods Sold Beg. Bal Beg Bal. Finished Goods Beg. Bal. End. Bal. 0 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 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.) No Event Answer is not complete. General Journal Debit Credit 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) Answer is not complete. RAVSTEN COMPANY Income Statement For the Year Ended December 31 Selling and administrative expenses: 0 0