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: $16,000

Work in process: $10,000

Finished goods: $30,000

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 $153,000 in manufacturing overhead cost. The following transactions were recorded for the year:

1. Raw materials were purchased on account: $200,000.
2. Raw materials were requisitioned for use in production: $190,000 (80% direct and 20% indirect).
3. The following costs were incurred for employee services:

Direct labour: $160,000

Indirect labour: $27,000

Sales commissions: $36,000

Administrative salaries: $80,000

4. Heat, power, and water costs were incurred in the factory: $42,000.

5. Prepaid insurance expired during the year: $10,000 (90% relates to factory operations, and 10% relates to selling and administrative activities).

6. Advertising costs were incurred, $50,000.

7. Depreciation was recorded for the year: $60,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).

8. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year.

9. Goods that cost $480,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

10. Sales for the year totalled $700,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $475,000.

Required:

1. Make 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.)

Journal entry worksheet Raw materials were purchased on account: $200,000. Note: Enter debits before credits. Record entry m View general journal Raw Materials Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. End. Bal. Work in Process Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal. Finished Goods Beg. Bal. End. Bal.View transaction list Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Record entry m View general journal 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) Selling and administrative expenses: _