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 $4,170,000 in manufacturing overhead cost at an activity level of 556,000 machine-hours.

The company spent the entire month of January working on a large order for 12,400 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow:

1. Raw materials purchased on account, $313,000.
2. Raw materials used in production, $265,000 (80% direct materials and 20% indirect materials).
3. Labor cost accrued in the factory, $177,000 (one-third direct labor and two-thirds indirect labor).
4. Depreciation recorded on factory equipment, $62,900.
5. Other manufacturing overhead costs incurred on account, $85,600.
6. Manufacturing overhead cost was applied to production on the basis of 40,950 machine-hours actually worked during the month.
7. The completed job for 12,400 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 (f) 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 to these T-accounts.

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

4. If 10,700 of the custom-made machined parts are shipped to the customer in February, how much of this jobs cost will be included in cost of goods sold for February?

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

• Required 1
• Required 2
• Required 3
• Required 4

Prepare journal entries to record items (a) through (f) 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	Debit	Credit
1	a.	Raw materials	313,000
		Accounts payable		313,000
2	b.	Work in process	212,000
		Manufacturing overhead	53,000
		Raw materials		265,000
3	c.	Work in process	59,000
		Manufacturing overhead	118,000
		Wages and salaries payable		177,000
4	d.	Manufacturing overhead	62,900
		Accumulated depreciation		62,900
5	e.	Manufacturing overhead	85,600
		Accounts payable		85,600
6	f.	Work in process	307,125
		Manufacturing overhead		307,125

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

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
b.	53,000	307,125	f.		b.	212,000
c.	118,000				c.	59,000
d.	62,900				f.	307,125
e.	85,600
End. Bal.	12,375				End. Bal.	578,125

No	Transaction	General Journal	Debit	Credit
1	g.	Finished goods	578,125
		Work in process		578,125

If 10,700 of the custom-made machined parts are shipped to the customer in February, how much of this jobs 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