Raw materials Work in process Finished goods $16,100 $10,100 $30,200 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 $153,360 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $200,500. b. Raw materials were requisitioned for use in production: $190,500 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $160,500 $27,100 $ 36,100 $ 80,200 d. Heat, power, and water costs were incurred in the factory: $42,100. e. Prepaid insurance expired during the year: $10,100 (90% relates to factory operations, and 10% relates to selling and administrative activities). f. Advertising costs were incurred, $50,100. g. Depreciation was recorded for the year: $60,100 (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 $481,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Sales for the year totalled $703,500 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $476,000. 4. Prepare an income statement for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. RAVSTEN COMPANY Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross profit Selling and administrative expenses: Sales commissions Administrative salaries Insurance expense Advertising expenses Depreciation expense Operating income $ 703,500 473,341x 230,159 $ 36,100 80,200 1,010 50,100 9,015 176,425 53,734 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. Beg. Bal Raw Materials 16,100 Answer is complete and correct. Manufacturing Overhead 0 Beg. Bal. 0 0 200,500 190,500 b. b. 38,100 170,400 h. End. Bal. 26,100 c. 27,100 d. 42,100 e. 9,090 g. 51,085 End. Bal. 2,925 Work in Process Cost of Goods Sold Beg. Bal 10,100 Beg. Bal. 0 b. 152,400 481,200 L 476,000 160,500 End. Bal 476,000 h 170,400 ( End. Bal. 12,200 Finished Goods Beg. Bal 30,200 0 End. Bal. 481,200 35,400 476,000 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.) No A Answer is complete and correct. Event General Journal Debit Credit 1 Manufacturing overhead 2,925.00 Work in process 68.15 Finished goods 197.76 Cost of goods sold 2,659.09