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: aterials in process Pinished goods $20,500 511.100 50,900 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,900 machine hours and incur 5173,430 in manufacturing overhead cost. The following transactions were recorded for the year a Raw materials were purchased on account $218,000 b. Raw materials were requisitioned for use in production $199.000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct Labour indirect labour. Sales con soninistrative salaries $167,200 $ 28,00 $38.700 5). d. Heat, power, and water costs were incurred in the factory, 546,050 e. Prepaid Insurance expired during the year514,500 (85% relates to factory operations, and 15% relates to selling and administrative activities) 1. Advertising costs were incurred, $54,500 . Depreciation was recorded for the year $65,400 (90% relates to factory operations, and 10% relates to selling and administrative activities) Manufacturing overhead cost was applied to production. The company recorded 41,800 machine-hours for the year Goods that cost 5520,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse Sales for the year totalled $741.900 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $513.200 View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 11 Raw materials were purchased on account: $218,000. Note: Enter debits before credits. Transaction General Joumol Debit Credit Record entry Clear entry View general Journal 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 Beg Bal End. Bal End. Bal 0 Work in Procton Cost of Goods Sold Beg Bal Beg Bat End Bal 0 End Bal Finished Goods Beg Bal 3-o. 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. (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
