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Ashville Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis

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Ashville Products manufactures various machined parts to customer specifications. The 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, it was estimated that the company would work 230,000 machine-hours and incur $5,750,000 in manufacturing overhead costs. The company spent the entire month of January working on a large order for 10,300 units of custom-made machined parts. The company had no work in process at the beginning of January Cost data relating to January follow: 8 a. Raw materials purchased on account, $464.000. b. Raw materials requisitioned for production, $400,000 (80% direct materials and the rest indirect materials). c. Labour cost incurred in the factory, $120,000 (50% indirect labour and the remaining direct labour). d. Depreciation recorded on factory equipment, $175,000 e. Other manufacturing overhead costs incurred, $95,000 (credit accounts payable) f. Manufacturing overhead cost applied to production on the basis of 16,500 machine-hours actually worked during the month. g. Completed job moved into finished goods warehouse on January 31 to await delivery to customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labour, and applied overhead.) Required: 1. Prepare journal entries to record items (a) through (1) above (ignore item (g) for the moment). (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) 2. Prepare T-accounts for manufacturing overhead and work in process. Post the relevant items from your journal entries to these T-accounts. b. Manufacturing Overhead 80,000 412,500 t. 60,000 175,000 fb. C. d. t. e. 3. Prepare a journal entry for item (g). (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal 1 1

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