ter 50 saved Help Save & Ch 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: Raw materials Work in process Finished goods $22,500 $12,600 $31,300 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,300 machine-hours and incur $154,795 in manufacturing overhead cost. The following transactions were recorded for the year a. Raw materials were purchased on account: $226,000. b. Raw materials were requisitioned for use in production: $203,000 (85% direct and 15% indirect). c. The following costs were incurred for employee services Direct labour Indirect labour Sales commissions Administrative salaries $170,400 $ 29,600 5 39,900 $ 85,200 nr 4 Next > 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.) 1 Raw materials were purchased on account: $226,000. 2 Raw materials were requisitioned for use in production: $203,000 (85% direct and 15% indirect). 3 Record the costs that were incurred for employee services. 4 Heat, power, and water costs were incurred in the factory: $47,850. 5 Prepaid insurance expired during the year: $16,500 (80% relates to factory operations, and 20% relates to selling and administrative activities). 11 The total cost to manufacture the goods according to sh their job cost sheets was $508,800. 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 Raw Materials Manufacturing Overhead Beg Bal Beg Bal End. Bal 0 End Bal Work in Process Cost of Goods Sold Beg Bal Beg Bal End Bal End Bal Finished Goods Beg. Bal End. Bal. 0 3-a. Is manufacturing overhead underapplied or overapplied for the year? O Overapplied overhead Underapplied overhead CH 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations and round your 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