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 $154.800 in manufacturing overhead cost. The following transactions were recorded for the year. a. Raw materials were purchased on account $202,500 b. Raw materiais were requisitioned for use in production: $192,500 ( 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 $42,500 e Prepaid insurance expired duting the year $10,500(90% relates to factory operations, and 10% relates to selling and administrative activities) (Advertising costs were incurted, $50,500 9 Depreciation was recorded for the year $50,600 (85\% relates to factory operations, and 15% relates to seling and administrative activites: h. Manufacturing overhead cost was applied to production The company recorded 40,000 machine-hours for the yeat 4 Goods that cost $486,000 to manufacture according to their job cost sheets were transferred to the finished poods warehouse. i 5 ales for the year totalied $777,500 and were all on account. The total cost to manufacture these poods according to their job cost sheets was $480,000 3-0. Is manufacturing overhead underapplied or overapplied for the year? Overapplied ovethead Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentages and final enswers to 2 decimal places. If no entry is required for a tansaction/event, select "No journal entry required" in the first accoumt field.) Answer is complete and correct. 4. Prepare an income statement for the yeat. (Do not round intermediate colculations and round your final onswers to nearest whole dollar omount.) 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. 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 $154.800 in manufacturing overhead cost. The following transactions were recorded for the year. a. Raw materials were purchased on account $202,500 b. Raw materiais were requisitioned for use in production: $192,500 ( 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 $42,500 e Prepaid insurance expired duting the year $10,500(90% relates to factory operations, and 10% relates to selling and administrative activities) (Advertising costs were incurted, $50,500 9 Depreciation was recorded for the year $50,600 (85\% relates to factory operations, and 15% relates to seling and administrative activites: h. Manufacturing overhead cost was applied to production The company recorded 40,000 machine-hours for the yeat 4 Goods that cost $486,000 to manufacture according to their job cost sheets were transferred to the finished poods warehouse. i 5 ales for the year totalied $777,500 and were all on account. The total cost to manufacture these poods according to their job cost sheets was $480,000 3-0. Is manufacturing overhead underapplied or overapplied for the year? Overapplied ovethead Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentages and final enswers to 2 decimal places. If no entry is required for a tansaction/event, select "No journal entry required" in the first accoumt field.) Answer is complete and correct. 4. Prepare an income statement for the yeat. (Do not round intermediate colculations and round your final onswers to nearest whole dollar omount.) 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