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	$	16,500
Work in process	$	10,200
Finished goods	$	30,100

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,100 machine-hours and incur $155,230 in manufacturing overhead cost. The following transactions were recorded for the year:

1. Raw materials were purchased on account: $202,000.
2. Raw materials were requisitioned for use in production: $191,000 (80% direct and 20% indirect).
3. The following costs were incurred for employee services:

Direct labour	$	160,800
Indirect labour	$	27,200
Sales commissions	$	36,300
Administrative salaries	$	80,400

4. Heat, power, and water costs were incurred in the factory: $42,450.
5. Prepaid insurance expired during the year: $10,500 (85% relates to factory operations, and 15% relates to selling and administrative activities).
6. Advertising costs were incurred, $50,500.
7. Depreciation was recorded for the year: $60,600 (90% relates to factory operations, and 10% relates to selling and administrative activities).
8. Manufacturing overhead cost was applied to production. The company recorded 40,200 machine-hours for the year.
9. Goods that cost $484,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
10. Sales for the year totalled $704,700 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $479,200.

2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (dont forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account.

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.)

4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)

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 16,500 191,000 202.000 27,500 Beg Bal b End. Bal C d. Manufacturing Overhead 172,850 38,200 27 200 42.450 8.925 54540 1.545 e. End. Bal Beg Bal Beg Bal Work in Process 10.200 484,400 152.800 160,800 172 860 12.260 Cost of Goods Sold 0 479.200 479,200 b End. Bat. O d. End. Bai. Beg. Bal. 1 End, Bal Finished Goods 30.100 479,200 484.400 35,300 rafma-sunda incerc spat didactic 1 4. Prepare an Income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount) OOO RAVSTEN COMPANY Income Statement For the Year Ended December 31 Sales $ 704,700 Cost of goods sold 477,655 Gross profit 227,045 Selling and administrative expenses Sales commissions $36,300 Administrative salaries 80.400 Advertising expenses 50,500 Insurance expense 1.575 Depreciation expense 6,060174,835 Operating income $ 52,210 olololololo 3-6. 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.) No General Journal Credit Event 1 Debit 1,545,00 1 Manufacturing overhead Cost of goods sold 1.54500