Ravsten Company uses a job-order costing system.

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 34,000 machine-hours and incur $176,800 in manufacturing overhead cost. The following transactions occurred during the year:

a. Raw materials requisitioned for use in production, $308,000 (80% direct and 20% indirect).

b. The following costs were incurred for employee services:

Direct labor $ 179,000 Indirect labor $ 37,000 Sales commissions $ 29,000 Administrative salaries $ 44,000

c. Heat, power, and water costs incurred in the factory, $75,000.

d. Insurance costs, $29,000 (90% relates to factory operations, and 10% relates to selling and administrative activities).

e. Advertising costs incurred, $69,000.

f. Depreciation recorded for the year, $79,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).

g. The company used 59,000 machine-hours during the year.

h. Goods that cost $499,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

i. Sales for the year totaled $738,000. The total cost to manufacture these goods according to their job cost sheets was $494,000.

. Prepare an income statement for the year. (Hint: No calculations are required to determine the cost of goods sold before any adjustment for underapplied or overapplied overhead.) (Round predetermined overhead rate to 2 decimal places.)