Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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 $4,237,500 in manufacturing overhead cost at an activity level of 565,000 machine-hours. The company spent the entire 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 materials purchased on account, $321,000. b. Raw materials used in production, $263,000 (80% direct materials and 20% Indirect materials). c. Labor cost accrued in the factory, $159,000 (one-third direct labor and two-thirds indirect labor), d. Depreciation recorded on factory equipment, $62,800. e. Other manufacturing overhead costs incurred on account, $84,300. 1. Manufacturing overhead cost was applied to production on the basis of 40,590 machine-hours actually worked during the month. g. The completed job for 12.200 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th edition

978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286

More Books

Students also viewed these Accounting questions

Question

. What are the most commonly used input devices?.

Answered: 1 week ago

Question

How do you feel in your new situation? How do you deal with it?

Answered: 1 week ago

Question

What are our roles, expectations, goals, and behaviour standards?

Answered: 1 week ago

Question

What do we need to operate as an effective virtual team?

Answered: 1 week ago