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Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the companys inventory balances were as follows: Raw materials

Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the companys inventory balances were as follows:

Raw materials $ 17,200
Work in process $ 11,200
Finished goods $ 32,400

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 $157,320 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased on account: $206,000.

Raw materials were requisitioned for use in production: $196,000 (80% direct and 20% indirect).

The following costs were incurred for employee services:

Direct labour $ 166,000
Indirect labour $ 28,200
Sales commissions $ 37,200
Administrative salaries $ 82,400

Heat, power, and water costs were incurred in the factory: $43,200.

Prepaid insurance expired during the year: $11,200 (90% relates to factory operations, and 10% relates to selling and administrative activities).

Advertising costs were incurred, $51,200.

Depreciation was recorded for the year: $61,200 (85% relates to factory operations, and 15% relates to selling and administrative activities).

Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year.

Goods that cost $494,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

Sales for the year totalled $742,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $487,000.

Required:

1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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