Exercise 3-10 (Algo) Applying Overhead; Journal Entries; T-accounts [LO3-1, LO3-2] 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 $4,305,000 in manufacturing overhead cost at an actlvity level of 574,000 machine-hours. The company spent the entire month of January working on a large order for 13,000 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: Q. Raw materials purchased on account, $312,000. b. Row materials used in production, $267,000 ( 80% direct materials and 20% indirect materlals). c. Labor cost accrued in the factory, $174,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $62,700. e. Other manufacturing overhead costs incurred on account, $85,900. 1. Manufacturing overhead cost wos applied to production on the bosis of 40,830 machine-hours actually worked during the month. 9. The completed job for 13,000 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 moterials, direct labor, and applied overhead.) Required: 1. Prepore joumal entries to record itoms (o) through (f) abovo lignore item (g) for the moment). 2. Prepare T-occounts for Manufacturing Overhead and Work in Process. Post the relevant itoms from yourjournal entics to these T. occounts 3. Piepare a Journal entiy for item (4) above. 4. If 11,000 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 soid for Fobruary? Trepare journal entries to record items (a) through (f) above [ignore item ( g ) for the moment]: (1f no entry is required for a cransaction/event, select "No joumal entry required" in the first account field. Do not round intermediate caleulations.) Journal entry worksheet \begin{tabular}{|l|l|l|} \hline Required 1 Required 2 & Required 3 3 Required 4 \\ \hline \end{tabular} 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 no entry is requined for a tanctictionfevent, select "No journal entry required in the first. account field.) Journal entry worksheet Record the entry to transfer from WIP to Finistued goods. Fote: Eriter se bits betore ciedits 1. Prepare joumal 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 Taccounts. 3. Prepare a journal entry for item (g) above. 4. If 11,000 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 11,000 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.)
