Dillon Products manufactures various machined parts to customer specifications. The company uses a job$-$order costing system and

applies overhead cost to jobs based on machine$-$hours. At the beginning of the year, the company used a cost formula to estimate

$$4,327,500$ in manufacturing overhead cost at an activity level of $577,000$ machine$-$hours.

The company spent the month of January working on a large order for $12,100$ 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, $$322,000.$

b$.$ Raw materials used in production, $$265,000(80\%$ direct materials and $20\%$ indirect materials$).$

c$.$ Labor cost accrued in the factory, $$156,000($one$-$third direct labor and two$-$thirds indirect labor$).$

d$.$ Depreciation recorded on factory equipment, $$63,300.$

e$.$ Other manufacturing overhead costs incurred on account, $$85,500.$

f$.$ Manufacturing overhead cost was applied to production on the basis of $40,920$ machine$-$hours actually worked.

g$.$ The completed job for $12,100$ 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 the cost of a completed job consists of direct

materials, direct labor, and applied overhead.$)$

Required:

Prepare journal entries to record items $($a$)$ through $($f$)$ above $[$ignore item $(g)$ for the moment$].$

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

accounts.

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

If $10,400$ 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?

Complete the question by entering your answers in the tabs below.

Prepare journal entries to record items $($a$)$ through $($f$)$ above $[$ignore item $(g)$ for the moment$].$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculations.

Journal entry worksheet