80.2K

Verified Solution

Link Copied!

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 $21,500 $12,200 $31, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37100 machine-hours and incur $150,255 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $222,000. b. Raw materials were requisitioned for use in production: $201.000 (85% direct and 15% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $168,800 $ 29, 200 $ 39,308 $ 84,400 d. Heat, power, and water costs were incurred in the factory: $46,950. e. Prepaid insurance expired during the year: $15,500 (80% relates to factory operations, and 20% relates to selling and administrative activities) f. Advertising costs were incurred, $55,500. g. Depreciation was recorded for the year: $66,600 (75% relates to factory operations, and 25% relates to selling and administrative activities) h. Manufacturing overhead cost was applied to production. The company recorded 42,200 machine-hours for the year. 1. Goods that cost $507,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $751,200 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $500,300. 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.) View transaction list Journal entry worksheet ws 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.) View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer