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 basis

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image 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 $4,339,600 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.) Journal entry worksheet Raw materials purchased on account, $310,000. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Raw materials used in production, $268,000 (80% direct materials and 20% indirect materials). Note: Enter debits before credits. Transaction General Journal Debit Credit b. Labor cost accrued in the factory, $150,000 (one-third direct labor and two- thirds indirect labor). Note: Enter debits before credits. Transaction General Journal Debit Credit C. Depreciation recorded on factory equipment, $63,200. Wote: Enter debits before credits. Transaction General Journal Debit Credit d. Other manufacturing overhead costs incurred on account, $85,500. Note: Enter debits before credits. Transaction General Journal Debit Credit Manufacturing overhead cost was applied to production on the basis of 40,880 machine-hours actually worked during the month. Note: Enter debits before credits. Transaction General Journal Debit Credit f

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting, 1, (6 Months)

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th Edition

1337270814, 9781337270816

More Books

Students also viewed these Accounting questions

Question

Can spreadsheets easily solve for interest rate or time?

Answered: 1 week ago