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 $4,312,500 in manufacturing overhead cost at an activity level of 575,000 machine-hours. The company spent the entire month of January working on a Large order for 12,800 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, $317,000. b. Raw materials used in production, $262.000(80% ditect 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, $63,400. e. Other manufacturing overhead costs incurred on account, $84,800. f. Manufacturing overhead cost was applied to production on the basis of 40,710 machine hours actually worked during the month. g. The completed job for 12,800 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. temember that the cost of a completed job consiats of direct materials, direct labor, and applied overhead) Required: 1. Prepare joumal entries to record items (a) through (i) above [ignore item (g) for the moment]. 2 Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your joumal entries to these T: accounts 2 Prenare a ini urnal entrufing item m ahmur Journal entry worksheet Record the entry to transfer from W1P to finished gocds. Note: Enter debens belore credts. Complete the question by entering your answers in the tabs below. e. Other manufacturing overhead costs incurred on account, $84,800. f. Manufacturing overhead cost was applied to production on the basis of 40,710 machine-hours actually worked during the month. 9. The completed job for 12,800 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 10,200 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. Complete the question by entering your answers in the tabs below. Prepare journal entries to record items (0) through ( f ) above [ignore item (g) for the moment]. (It no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculotions.) accounts. 3. Prepare a journal entry for item (g) above. 4, If 10,200 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. If 10,200 of the custom made machined parts are shipped to the customer in February, how much of this job's cost wall be included in cost of goods sold for february? (Round your intermediate calculations to 2 decimal pleces and fines answer to the nearest whole doflar amount, ) Complete the question by entering your answers in the tabs below. Prepare a journal entry for itern (g) above. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field.)
