2 Exercise 3-10 Applying Overhead; Journal Entries: T-accounts [LO3-1, LO3-2] illon Products manufactures various machined parts to customer specifications. The compan uses a job-order costing system and applies overhead cost estimate that it would incur $4,222.500 in manufacturing overhead cost at an activity level of 563,000 machine-hours. to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to ints company spent the entire month of January working on a large order for 12,700 custom-made machined parts. The company had Book no work in process at the beginning of January. Cost data relating to January follow: a. Raw materials purchased on account, $314,000 b. Raw materials used in production. $256,000 (80% direct materials and 20% indirect materials) c. Labor cost accrued in the factory, $180,000 (one-third direct labor and two-thirds indirect labor) d. Depreciation recorded on factory equipment, $62.900 e. Other manufacturing overhead costs incurred on account, $86,000 f. Manufacturing overhead cost was applied to produc g. The completed job for 12,700 custom-made machined parts was moved into the finished goods warehouse on Janua Hint Print tion on the basis of 40.720 machine-hours actually worked during the month. ry 31 to await delivery to the customer. (In computing the dollar a materials, direct labor, and applied overhead.) mount for this entry, remember that the cost of a completed job consists of direct References Required 1. Prepare journal entries to record items (a) through (f) above lignore item (g) for the moment) nufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these accounts 3. Pre pare a journal entry for item (g) above. O of the custom-made machine d parts are shipped to the customer in February, how much of this job's cost will be included in cost of goods sold for February