Ravsten Company uses a job-order costing system. On January 1, the beginning of the current...
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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 $18,500 $11,000 $30,500 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36.500 machine-hours and incur $164.250 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $210.000 b. Raw materials were requisitioned for use in production: $195,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales comissions Administrative salaries $164,000 $ 25,000 $ 37,500 $ 82,000
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