Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory bala were as follows: Raw materials Work in process Finished goods The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it wo work 36,000 machine-hours and incur $154,440 in manufacturing overhead cost. The following transactions were recorded for the year: $16,400 $10,400 $30,800 a. Raw materials were purchased on account: $202,000. b. Raw materials were requisitioned for use in production: $192,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions, Administrative salaries $162,000 $ 27,400 $36,400 $ 80,800 d. Heat, power, and water costs were incurred in the factory: $42,400. e. Prepaid insurance expired during the year: $10,400 (90% relates to factory operations, and 10% relates to selling and administrativ activities). f. Advertising costs were incurred, $50,400. g. Depreciation was recorded for the year: $60,400 (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. i. Goods that cost $484,800 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $714,000 and were all on account. The total cost to manufacture these goods according to their inh cont sheets was $479,000.

Ravsten Company uses a job-order costing system. On January 1 , the beginning of the current year, the company's inventory bala 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 wo work 36,000 machine-hours and incur $154,440 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account $202,000 b. Raw materials were requisitioned for use in production: $192,000 ( 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: $42,400 e. Prepaid insurance expired during the year: $10,400 (90\% relates to factory operations, and 10% relates to selling and administrati activities) t. Advervising costs were incurred, $50,400 9. Depreciation was recorded for the year: $60,400 (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 $484,800 to manufocture according to their job cost sheets were transferred to the finished goods warehouse. 1. Sales for the year totalled $714,000 and were all on account The total sheets was $479,000