Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the companys inventory balances were as follows:

Raw materials	$	18,000
Work in process	$	10,800
Finished goods	$	30,400

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,400 machine-hours and incur $161,980 in manufacturing overhead cost. The following transactions were recorded for the year:

1. Raw materials were purchased on account: $208,000.
2. Raw materials were requisitioned for use in production: $194,000 (80% direct and 20% indirect).
3. The following costs were incurred for employee services:

Direct labour	$	163,200
Indirect labour	$	27,800
Sales commissions	$	37,200
Administrative salaries	$	81,600

4. Heat, power, and water costs were incurred in the factory: $43,800.
5. Prepaid insurance expired during the year: $12,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).
6. Advertising costs were incurred, $52,000.
7. Depreciation was recorded for the year: $62,400 (90% relates to factory operations, and 10% relates to selling and administrative activities).
8. Manufacturing overhead cost was applied to production. The company recorded 40,800 machine-hours for the year.
9. Goods that cost $497,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
10. Sales for the year totalled $718,600 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $491,800.

Required:

3-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.) X Answer is complete but not entirely correct. No Event General Journal Debit Credit A 1 4,800.00 Manufacturing overhead Work in process Finished goods Cost of goods sold 117.00 X 321.00 X 4,362.00 X 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) X Answer is complete but not entirely correct. RAVSTEN COMPANY $ 718,600 492,000 X 226,600 Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross profit Selling and administrative expenses: Sales commissions $ 37,200 Administrative salaries 81,600 Insurance expense 1,800 Advertising expenses 52,000 Depreciation expense 6,240 Operating income OOOOO 178,840 47,760 $