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 $158,040 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account. $207,000 b. Raw materials were requisitioned for use in production: $197,000 ( 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: $43,400. e. Prepaid insurance explred during the year: $11,400(90% relates to factory operations, and 10% relates to selling and administrative activities) f. Advertising costs were incurred, $51,400. 9. Depreciation was recorded for the year: $61,400 (85\% relates to factory operations, and 15% relates to selling and administrative activities) h. Manufacturing ovethead cost was applied to production. The company recorded 40,000 machine-hours for the year. 1. Goods that cost $496,800 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. 1 Sales for the year totalled $749,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $489.000. 1. Prepare journal entries to record the transactions given above. (Do not round intermediote calculations. If no entry is required for o transaction/event, select "No journal entry required" in the first account field.) 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. 3-0. Is manufacturing overhead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead b. Prepare a joumal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentages ad final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first ccount field.) Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Wote: Loter dobits before oredits. 4. Prepare an income statement for the year. (Do not round intermediote calculations and round your final answers to nearest whole dollar amount.)