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 $ 20,000 Work in process $ 11,600 Finished goods $ 30,800 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,800 machine-hours and incur $171,120 in manufacturing overhead cost. The following transactions were recorded for the year:
Raw materials were purchased on account: $216,000.
Raw materials were requisitioned for use in production: $198,000 (80% direct and 20% indirect).
The following costs were incurred for employee services:
Direct labour $ 166,400 Indirect labour $ 28,600 Sales commissions $ 38,400 Administrative salaries $ 83,200 Heat, power, and water costs were incurred in the factory: $45,600.
Prepaid insurance expired during the year: $14,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).
Advertising costs were incurred, $54,000.
Depreciation was recorded for the year: $64,800 (90% relates to factory operations, and 10% relates to selling and administrative activities).
Manufacturing overhead cost was applied to production. The company recorded 41,600 machine-hours for the year.
Goods that cost $515,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
Sales for the year totalled $737,200 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $508,800.
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.)