Ravsten Company uses ajob-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials $17,800 Work in process $11,300 Finished goods $33,600 The company applies overhead cost tojobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur $159,480 in manufacturing overhead cost. The following transactions were recorded forthe yeah a. Raw materials were purchased on account: $209,000. b. Raw materials were requisitioned for use in production: $199,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour $169,000 Indirect labour $ 23,800 Sales commissions $ 37,800 Administrative salaries $ 83,600 01. Heat, power, and water costs were incurred in the factory: $43,800. e. Prepaid insurance expired during the year: $11,800 (90% relates to factory operations, and 10% relates to selling and administrative activities). f. Advertising costs were incurred, $51,800. 9. Depreciation was recorded for the year: $61,200 (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 forthe year. i. Goods that cost $501,600 to manufacture according to theirjob cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $763,000 and were all on account. The total cost to manufacture these goods according to theirjob cost sheets was $493,000. /' Raw materials 209,000 Accounts payable 209.000 1' Work in process 159,200 Manufacturing overhead 39,800 Raw materials 199.000 1' Work in process 169,000 Manufacturing overhead 28,800 Sales commissions expense 37,800 Administrative salaries expense 83,600 Salaries and wages payable 319.200 1' Manufacturing overhead 43,800 Accounts payable 43.800 1' Manufacturing overhead 10,620 Insurance expense 1,180 Prepaid insurance 11.800 1' Advertising expense 51,800 Accounts payable 51.800 I Manufacturing overhead 52,020 Depreciation expense 9,180 Accumulated depreciation 61.200 " Work in process 177,200 Manufacturing overhead 177.200 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from yourjournal entries to these Taccounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. 3-a. Is manufacturing overhead underapplied or overapplied for the year? O Overapplied overhead O Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentages and final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) :| Selling and administrative expenses