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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

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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 37,000 machine-hours and incur $148,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials wete purchased on account: $220,000 b. Raw materials were requisitioned for use in production: $200,000(85% direct and 15% indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $46,500. e. Prepaid insurance expired during the year, $15,000 ( 80% relates to factory operations, and 20% relates to selling and administrative activities) f. Advertising costs were incurred, $55,000 9. Depreciation was recorded for the year $66,000 (75\% relates to factory operations, and 25% relates to selling and administrative activities) h. Manufacturing overhead cost was applied to production. The company recorded 42,000 machine-hours for the year, 1. Goods that cost $503,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Sales for the year totalled $746,500 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $496,000. 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-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note. Enter debats biffro credite 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)

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