Dillon 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, the company used a cost formula to estimate that it would incur $4,166,200 in manufacturing overhead cost at an activity level of 563,000 machine-hours.

The company spent the entire month of January working on a large order for 12,800 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow:

Raw materials purchased on account, $324,000.

Raw materials used in production, $270,000 (80% direct materials and 20% indirect materials).

Labor cost accrued in the factory, $177,000 (one-third direct labor and two-thirds indirect labor).

Depreciation recorded on factory equipment, $62,200.

Other manufacturing overhead costs incurred on account, $85,300.

Manufacturing overhead cost was applied to production on the basis of 40,690 machine-hours actually worked during the month.

The completed job for 12,800 custom-made machined parts was moved into the finished goods warehouse on January 31 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.)

- Prepare a journal entry for item (g) above.

Finished goods Debit $576106, Work in Process Credit $5767106

- Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T-accounts.

Manufacturing Overhead Ending Balance: $18394

Work in Process Ending Balance: $576106

Required:

4. If 10,400 of the custom-made machined parts are shipped to the customer in February, how much of this jobs cost will be included in cost of goods sold for February?(Portion of Job Included in Cost of Goods Sold)