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 $ 19,000 Work in process $ 11,200 Finished goods $ 30,600 The company applies overhead cost to jobs on the basis of machine hours For the current year, the company estimated that it would work 36,600 machine hours and incur $166,530 in manufacturing overhead cost The following transactions were recorded for the year Raw materials were purchased on account $212,000 Raw materials were requisitioned for use in production $196,000 (80 direct and 20 indirect) The following costs were incurred for employee services Direct labour $ 164,800 Indirect labour $ 28,200 Sales commissions $ 37,800 Administrative salaries $ 82,400 Heat, power, and water costs were incurred in the factory $44,700 Prepaid insurance expired during the year $13,000 (85 relates to factory operations, and 15 relates to selling and administrative activities) Advertising costs were incurred, $53,000 Depreciation was recorded for the year $63,600 (90 relates to factory operations, and 10 relates to selling and administrative activities) Manufacturing overhead cost was applied to production The company recorded 41,200 machine hours for the year Goods that cost $506,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse Sales for the year totalled $727,900 and were all on account The total cost to manufacture these goods according to their job cost sheets was $500,300 Required 1 Prepare 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 ) View transaction st Journal entry worksheet 1 2 345 8 7 8 11 Raw materials were purchased on account $212,000 Note Enter debits before credits Transaction General Journal Debit Credit View general journal Record entry Clear entry 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 Raw Materials Beg Bal End Bal 0 Manufacturing Overhead Beg Bal End Bal Work in Process Cost of Goods Sold Beg Bal Beg Bal End Bal 0 End Bal Finished Goods Beg Bal End Bal 0

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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

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	$	19,000
Work in process	$	11,200
Finished goods	$	30,600

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,600 machine-hours and incur $166,530 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased on account: $212,000.
Raw materials were requisitioned for use in production: $196,000 (80% direct and 20% indirect).
The following costs were incurred for employee services:


Direct labour	$	164,800
Indirect labour	$	28,200
Sales commissions	$	37,800
Administrative salaries	$	82,400

Heat, power, and water costs were incurred in the factory: $44,700.
Prepaid insurance expired during the year: $13,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).
Advertising costs were incurred, $53,000.
Depreciation was recorded for the year: $63,600 (90% relates to factory operations, and 10% relates to selling and administrative activities).
Manufacturing overhead cost was applied to production. The company recorded 41,200 machine-hours for the year.
Goods that cost $506,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
Sales for the year totalled $727,900 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $500,300.