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 $154,080 in manufacturing overhead cost. The following transactions were recorded for the year. a. Raw materials were purchased on account $201,500 b. Raw materials were requisitioned for use in production: $191,500(80% direct and 20% indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory $42,300 e. Prepaid insurance expired during the year: $10,300 (90\% relates to factory operations, and 10% relates to selling and administrative activities) f. Advertising costs were incurred, $50,300. 9. Depreciation was recorded for the year $60,200 (85\% relates to factory operations, and 15% relates to selling and administrative activities) h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. 1. Goods that cost $483,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 1. Sales for the year totalled $710,500 and were all on account. The total cost to manufacture these goods according to their fob cost sheets was $478,000. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate colculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2467 Raw materials were purchased on account: $201,500. Note: Enter debits before credits. 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entri to these T-accounts (don't forget to enter the opening balances in your inventory accounts) Compute an ending balance in each account. 3-0. Is manufacturing overhead underapplied or overapplied for the year? Overapplied overhead Underapplied overhead 3-b. Prepare a joumal entry to properly dispose of any baiance in the Manufacturing Overhead account. (Round your percentages and finol onswers to 2 decimol ploces. If no entry is required for o tronsaction/event, select "No journal entry required" in the fir occount field.) Journal entry worksheet Record the entry to properiy 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 answers to nearest whole dollar amount.)