Bonita Wings, Inc. manufactures airplanes for use in stunt shows. Bonita's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Bonita uses a job order costing system to accumulate product costs. At the end of 2020, Bonita's accountants developed the following expectations for 2021 based on the marketing department's sales forecast: Budgeted overhead cost $1,050,000 Estimated machine hours 50,000 Estimated direct labor hours 9,000 Estimated direct materials cost $1,500,000 Bonita's inventory count, completed on December 31, 2020, revealed the following ending inventory balances: Raw Materials Inventory $251,000 Work in Process Inventory $625,000 Finished Goods Inventory $2,080,000 The company's 2021 payroll data revealed the following actual payroll costs for the year: Number Employed Annual Salary per Employee Wage Rate per Hour Job Title Total Hours Worked per Employee President and CEO 1 $224,000 Vice president and CFO 1 $177,000 Factory manager 1 $40,300 Assistant factory manager 1 $31,400 Machine operator 5 $15 2,250 Security guard, factory 2 $20,400 Forklift operator 2 $8 2,000 Corporate secretary 1 $35,700 Janitor, factory 2 $6 2,150 The following information was taken from Bonita's Schedule of Plant Assets. All assets are depreciated using the straight-line method. Plant Asset Purchase Price Salvage Value Useful Life Factory building $4,000,000 $150,000 20 Years $650,000 $125,000 30 Years Administrative office Factory equipment $2,000,000 $20,000 12 Years Other miscellaneous costs for 2020 all paid in cash included: Cost Amount Factory insurance (fully expired) $12,300 Administrative office utilities $5,400 Factory utilities $30,100 Office supplies (fully consumed) $4,100 Additional information about Bonita's operations in 2020 includes the following: Raw materials purchases for the year amounted to $1,945,000. All materials were purchased on account. The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials. Bonita applied overhead to Work in Process Inventory based on direct materials cost. Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory. Bonita uses a markup of 150% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account. (Note: This transaction requires two journal entries.) 2. Manufacturing Overhead 127800 Salaries Payable 127800 (To record salaried factory worker costs) 3. Manufacturing Overhead Work in Process Inventory Wages Payable 62650 (To record hourly factory worker costs) 4. Depreciation Expense Accumulated Depreciation (To record depreciation on administrative office equipment) 5. Manufacturing Overhead Accumulated Depreciation (To record depreciation on factory building and equipment) 6. Cost of Goods Manufactured UNE Accounts Payable (To record administrative office utilities and office supplies expense) 7. (To record factory insurance and factory utilities) 8. Raw Materials Inventory Accounts Payable (To record raw materials purchases) 9. Manufacturing Overhead UNT Work in Process Inventory Raw Materials Inventory (To record direct materials and indirect materials used in production) 10. Work in Process Inventory Manufacturing Overhead (To apply overhead to work in process) 11. Finished Goods Inventory Work in Process Inventory (To record transfer of completed airplanes) 12. Accounts Receivable Sales Revenue (To record sale of airplanes to customers) 13. Cost of Goods Sold Finished Goods Inventory (To record cost of airplanes sold)