Answered step by step
Verified Expert Solution
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 basis
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 $4,339,600 in manufacturing overhead cost at an activity level of 571,000 machine-hours. The company spent the entire month of January working on a large order for 12,700 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, $310,000, b. Raw materials used in production, $268.000 (80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory, $150,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $63,200. e Other manufacturing overhead costs incurred on account. $85,500. f. Manufacturing overhead cost was applied to production on the basis of 40,880 machine-hours actually worked during the month. 9. The completed job for 12,700 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 T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T- accounts. Manufacturing Overhead Work in Process End. Bal. End. Bal Record the entry to transfer from WIP to Finished goods. Note: Enter debits before credits. Transaction General Journal Debit Credit g. If 10,600 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be Included in cost of goods sold for February? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Portion of job cost included in cost of goods sold
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668f97bf2d570_526668f97bec1be0.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668f97bfc9e4b_527668f97bf5c557.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668f97c0622bc_528668f97c003978.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668f97c0e4429_528668f97c08cd9f.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started