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 $4,332,000 in manufacturing overhead cost at an activity level of 570,000 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, $312,000. b. Raw materials used in production, $270,000 (80% direct materials and 20% indirect materials). c Labor cost accrued in the factory, $168,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $63,700. e. Other manufacturing overhead costs incurred on account. $84,800. Manufacturing overhead cost was applied to production on the basis of 40,860 machine-hours actually worked during the month. 9. The completed job for 12,200 custom-made machined parts was moved into the finished goods warehouse on January 31 to await delivery to the customer in computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead) Required: 1. Prepare journal entries to record items (a) through (1) above [ignore item (a) for the moment) 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T. accounts 3. Prepare a journal entry for item (g) above. 4.1 10.500 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be included in cost of goods sold for February? Required 1 Required 2 Required 3 Required 4 Prepare journal entries to record items (a) through (6) above [ignore item (g) for the moment). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) No Transaction General Journal 1 a. Debit Credit Raw materials Accounts payable 312,000 312,000 2 b. Work in process Manufacturing overhead Raw materials llo 216,000 54,000 3 270,000 C Work in process Manufacturing overhead Wages and salaries payable 112,000 56,000 X 0 4 d. 168,000 Manufacturing overhead Depreciation expense 63,700 5 63,700 Manufacturing overhead Accounts payable >$ 84,800 6 1 84,800 Work in process Manufacturing overhead 217,640 217,640 3 Required 2 Required: 1. Prepare journal entries to record items (a) through (1) above [ignore item (g) for the moment). 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries accounts 3. Prepare a journal entry for item (9) above. 4. If 10,500 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will b in cost of goods sold for February? Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T- accounts Work in Process b. Manufacturing Overhead 54.000 310,536 56,000 63,700 84,800 b. d c 216,000 112,000 X 310,536 0. End. Bal 52,036 End. Bal 638,536 In cost of goods sold for February? sale Shipped to the customer in February, how much of this job's cost will be includ Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a journal entry for item (9) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction 9 1 General Journal Finished goods Work in process Debit 638,536 Credit Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If 10,500 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 549,570
