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1 0 Dillon Products manutactures various machined parts to customer specifications. I he company uses a job - order costing system and applies overhead cost
Dillon Products manutactures various machined parts to customer specifications. I he company uses a joborder costing system and applies overhead cost to jobs on the basis of machinehours. At the beginning of the year, the company used a cost formula to estimate that it would incur $ in manufacturing overhead cost at an activity level of machinehours. The company spent the entire month of January working on a large order for custommade 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, $ b Raw materials used in production, $ direct materials and indirect materials c Labor cost accrued in the factory, $onethird direct labor and twothirds indirect labor d Depreciation recorded on factory equipment, $ e Other manufacturing overhead costs incurred on account, $ f Manufacturing overhead cost was applied to production on the basis of machinehours actually worked during the month. g The completed job for custommade machined parts was moved into the finished goods warehouse on January 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 above ignore item for the moment Prepare Taccounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these Taccounts. Prepare a journal entry for item above. If of the custommade machined parts are shipped to the customer in February, how much of this job's cost will be included
Dillon Products manutactures various machined parts to customer specifications. I he company uses a joborder costing system and applies overhead cost to jobs on the basis of machinehours. At the beginning of the year, the company used a cost formula to estimate that it would incur $ in manufacturing overhead cost at an activity level of machinehours.
The company spent the entire month of January working on a large order for custommade 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, $
b Raw materials used in production, $ direct materials and indirect materials
c Labor cost accrued in the factory, $onethird direct labor and twothirds indirect labor
d Depreciation recorded on factory equipment, $
e Other manufacturing overhead costs incurred on account, $
f Manufacturing overhead cost was applied to production on the basis of machinehours actually worked during the month.
g The completed job for custommade machined parts was moved into the finished goods warehouse on January 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 above ignore item for the moment
Prepare Taccounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these Taccounts.
Prepare a journal entry for item above.
If of the custommade machined parts are shipped to the customer in February, how much of this job's cost will be included
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