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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

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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 36.000 machine hours and incur $154,080 in mianufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $201,500 b. Raw materlals were requisitioned for use in production: $191,500 (80\% direct and 20% indirect). c. The following costs wete incurred for employee services d. Heat, power, and water costs were incurred in the factory: $42,300 e. Prepaid insurance expired during the year: $10,300(90% relates to factory operations, and 10% relates to selling and administrative activities). 1. Advertising costs were incurred, $50,300. g. Depreciation was recorded for the year: $60,200(85% relates to factory operations, and 15% relates to selling and administrative activities). h. Manufacturing overhead cost was applled to production. The company recorded 40,000 machine-hours for the year. 1. Goods that cost $483,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $710,500 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $478,000. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculotions. If no entry is required for a 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-o. Is manufacturing overhead underapplied or overapplied for the year? Overapplled overhead Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentoges and final onswers to 2 decimal ploces. If no entry is required for o transoction/event, select "No journol entry required" in the first occount field.)

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