Dillon products manufactured Various machine parts to customer specifications. The company uses a job order costing system and applied overhead cost to jobs on the basis of machine hours. At the beginning of the year the company use a cost for me to estimate that would encourage $4,225,400 in manufacturing overhead cost at an activity level of 571,000 machine hours.

The companies spent entire month of January working a large order of 12,200 custom made machine parts. The company have no work in process at the beginning of January. are related to January follows:

a. Raw materials purchased on account, $315,000

b. Raw materials used in production, $261,000. (80% direct materials and 20% in direct materials)

c. Labor cost accrued in the factory, $168,000 (1/3 direct labor, and 2/3 indirect labor)

d. depreciation recorded on factory equipment, $63,000.

e. Other manufacturing overhead costs incurred on account, $85,600

f. Manufacturing overhead cost was applied to production on the basis of 40,560 machine hours actually work during the month.

g. The completed job for 12,200 custom made machine parts was moved into the finish good warehouse on January 31 208 delivery to the customer. (in computing the dollar amount for the entry. Remember that the cost of a complete a job consist of direct materials and direct labor and applied overhead.)

Prepare journal entries to record items a through F above for the moment. T accounts for manufacturing overhead and work in process. Relevant items from your journal entries through these accounts.

Prepare a journal entry for items above

If 10,800 of the custom made machine parts are shipped to the customer in February how much of this jobs cost will be included in the cost of good sold by February?

Dilof Products manufactures various machined ports to customer specifications, The company uses a job-order costing system and npplies overhead cost to jobs on the basis of machine-hours. At the beginning of the yeat, the company used a cost formula to estimate that it would incur $4,225,400 in manufacturing overhend cost at an activity level of 571,000 machine hours The company spent the entre month of January working on a large order for 12,200 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw matenials purchased on account, $315,000. b. Haw matenals used in production, $261,000 (80\% deect materials and 20% indirect materiabs). c. Labor cost accrued in the factory, $168,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equ pment, $63,000. e. Other manufacturing overhead costs inculred on account, 585,600 f. Manufacturing ovethead cost was applied to production on the basis of 40,560 machine-hours actually worked during the month. 9. The completed job for 12,200 custom-mode machined parts was moved into the finished goods warehouse on January 31 to await detivery to the customet (in computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, disect labor, and applied overhead) Required: 1. Piepare joumal entries to record items (a) through (i) above (ignore item (a) for the moment). 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your jouinal entries to these T. iccounts 3. Prepare a journal entry for item (id) above. 4. if to,800 of the custom-made machined parts are shipped to the customer in February. how much of this jab's cost will be included in cost of goods sold for February? Dilof Products manufactures various machined ports to customer specifications, The company uses a job-order costing system and npplies overhead cost to jobs on the basis of machine-hours. At the beginning of the yeat, the company used a cost formula to estimate that it would incur $4,225,400 in manufacturing overhend cost at an activity level of 571,000 machine hours The company spent the entre month of January working on a large order for 12,200 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw matenials purchased on account, $315,000. b. Haw matenals used in production, $261,000 (80\% deect materials and 20% indirect materiabs). c. Labor cost accrued in the factory, $168,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equ pment, $63,000. e. Other manufacturing overhead costs inculred on account, 585,600 f. Manufacturing ovethead cost was applied to production on the basis of 40,560 machine-hours actually worked during the month. 9. The completed job for 12,200 custom-mode machined parts was moved into the finished goods warehouse on January 31 to await detivery to the customet (in computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, disect labor, and applied overhead) Required: 1. Piepare joumal entries to record items (a) through (i) above (ignore item (a) for the moment). 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your jouinal entries to these T. iccounts 3. Prepare a journal entry for item (id) above. 4. if to,800 of the custom-made machined parts are shipped to the customer in February. how much of this jab's cost will be included in cost of goods sold for February