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	$	25,000
Work in process	$	13,600
Finished goods	$	31,800

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,800 machine-hours and incur $166,320 in manufacturing overhead cost. The following transactions were recorded for the year:

1. Raw materials were purchased on account: $236,000.
2. Raw materials were requisitioned for use in production: $208,000 (85% direct and 15% indirect).
3. The following costs were incurred for employee services:

Direct labour	$	174,400
Indirect labour	$	30,600
Sales commissions	$	41,400
Administrative salaries	$	87,200

4. Heat, power, and water costs were incurred in the factory: $50,100.
5. Prepaid insurance expired during the year: $19,000 (80% relates to factory operations, and 20% relates to selling and administrative activities).
6. Advertising costs were incurred, $59,000.
7. Depreciation was recorded for the year: $70,800 (75% relates to factory operations, and 25% relates to selling and administrative activities).
8. Manufacturing overhead cost was applied to production. The company recorded 43,600 machine-hours for the year.
9. Goods that cost $539,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
10. Sales for the year totalled $783,700 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $530,600.

4. Prepare an income statement for the year. (Round intermediate calculations to nearest whole number.) RAVSTEN COMPANY Income Statement For the Year Ended December 31 Selling and administrative expenses