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: 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 \$155,520 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw matenals were purchased on account: $203,500 b. Raw materials were requisitioned for use in production: $193.500 (80\% direct and 201 indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $42,700. e Prepaid insurance explred during the year: $10.700 (90\% relates to factory operations, and 10% relates to selling and administrative activities]. 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 $155,520 in manufacturing overhead cost. The following transactions were recorded for the yeat: a. Raw materlals were purchased on account $203.500. b. Raw materlals were requisitioned for use in production: $193,500(80% direct and 20% indirect). c. The following costs were incurred for employee services. d. Heat, power, and water costs were incured in the factory: $42,700 e. Prepaid insurance expired during the year: $10,700 (90\% relates to factory operations, and 10% relates to selling and administrative activities) 1. Advertising costs were incurred, $50,700. 9. Depreciation was recorded for the year: $60,700 (85\% relates to factory operations, and 15% relates to selling and administrative activities). h. Manufacturing overthead cost was applied to production. The company recorded 40,000 machine hours for the yeat. i Goods that cost $488,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 1. Sales for the year totalled $724,500 and were all on account. The tofal cost to manufacture these goods according to their job cost sheets was $482.000. Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note; Enter debits before credits. 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final whole dollar amount.) 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: 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 \$155,520 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw matenals were purchased on account: $203,500 b. Raw materials were requisitioned for use in production: $193.500 (80\% direct and 201 indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $42,700. e Prepaid insurance explred during the year: $10.700 (90\% relates to factory operations, and 10% relates to selling and administrative activities]. 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 $155,520 in manufacturing overhead cost. The following transactions were recorded for the yeat: a. Raw materlals were purchased on account $203.500. b. Raw materlals were requisitioned for use in production: $193,500(80% direct and 20% indirect). c. The following costs were incurred for employee services. d. Heat, power, and water costs were incured in the factory: $42,700 e. Prepaid insurance expired during the year: $10,700 (90\% relates to factory operations, and 10% relates to selling and administrative activities) 1. Advertising costs were incurred, $50,700. 9. Depreciation was recorded for the year: $60,700 (85\% relates to factory operations, and 15% relates to selling and administrative activities). h. Manufacturing overthead cost was applied to production. The company recorded 40,000 machine hours for the yeat. i Goods that cost $488,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 1. Sales for the year totalled $724,500 and were all on account. The tofal cost to manufacture these goods according to their job cost sheets was $482.000. Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note; Enter debits before credits. 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final whole dollar amount.)
