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 $4,158,800 in manufacturing overhead cost at an activity level of 562,000 machine-hours.

The company spent the entire month of January working on a large order for 12,500 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow:

Raw materials purchased on account, $312,000.

Raw materials used in production, $254,000 (80% direct materials and 20% indirect materials).

Labor cost accrued in the factory, $168,000 (one-third direct labor and two-thirds indirect labor).

Depreciation recorded on factory equipment, $62,100.

Other manufacturing overhead costs incurred on account, $85,200.

Manufacturing overhead cost was applied to production on the basis of 40,970 machine-hours actually worked during the month.

The completed job for 12,500 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 10,600 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?

Primare Corporation has provided the following data concerning last months manufacturing operations.

Purchases of raw materials	$	30,000
Indirect materials included in manufacturing overhead	$	4,950
Direct labor	$	59,400
Manufacturing overhead applied to work in process	$	87,500
Underapplied overhead	$	4,010

Inventories	Beginning		Ending
Raw materials	$	11,100	$	18,500
Work in process	$	54,600	$	69,700
Finished goods	$	33,600	$	43,800

Required:

1. Prepare a schedule of cost of goods manufactured for the month.

2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.