$10$

Dillon Products manutactures various machined parts to customer specifications. I he company uses a job$-$order costing system and applies overhead cost to jobs on the basis of machine$-$hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $$4,282,500$ in manufacturing overhead cost at an activity level of $571,000$ machine$-$hours.

The company spent the entire month of January working on a large order for $12,400$ custom$-$made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow.

a$.$ Raw materials purchased on account, $$313,000.$

b$.$ Raw materials used in production, $$269,000(80\%$ direct materials and $20\%$ indirect materials$).$

c$.$ Labor cost accrued in the factory, $$171,000($one$-$third direct labor and two$-$thirds indirect labor$).$

d$.$ Depreciation recorded on factory equipment, $$63,100.$

e$.$ Other manufacturing overhead costs incurred on account, $$85,700.$

f$.$ Manufacturing overhead cost was applied to production on the basis of $40,930$ machine$-$hours actually worked during the month.

g$.$ The completed job for $12,400$ custom$-$made machined parts was moved into the finished goods warehouse on January $31$ to await delivery to the customer. $($In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead$)$

Required:

Prepare journal entries to record items $($a$)$ through $(f)$ above $[$ignore item $(g)$ for the moment$].$

Prepare T$-$accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these Taccounts.

Prepare a journal entry for item $(g)$ above.

If $10,000$ of the custom$-$made machined parts are shipped to the customer in February, how much of this job's cost will be included