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 machine-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 Direct labour Indirect labour Sales commissions Administrative salaries $170,000 $ 29,000 $170,000 $29,000 $ 38,000 $ 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 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 Answer is not complete. Beg. Bal Raw Materials 18,000 + Beg Bal Manufacturing Overhead 40,000 178,000 a 210,000 200,000 b. 200,000 200,000 End. Bal 28,000 C 44,000 d 10.800 e 52,700 1,500 End. Bal. 29,000 Work in Process Cost of Goods Sold Bog. Bal 12,000 Bog. Bal 0 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.) Answer is not complete. No Event General Journal Debit Credit A 1 Manufacturing overhead 1,500.00 Cost of goods sold 1,500.00x Return to question 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 complete but not entirely correct. RAVSTEN COMPANY Income Statement For the Year Ended December 311 Sales $ 770,000 Cost of goods sold Gross profit (493,000) 277,000 Selling and administrative expenses: Sales commissions $ 38,000 Administrative salaries 84,000 Insurance expense Advertising expenses Depreciation expense 1,200 52,000 9,300 184,500 02.500