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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

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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 fobs on the bacis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,271,200 in manufactuing overhead cost at an activity level of 562.000 miachine-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 Colt data relating to January follow. a. Raw matecials purchased on account, $31 tooo. b. Raw materials used in production, $255,000(80% direct moterials and 202 indirect materals) ci Labor cost accrued in the foctory. \$156,000 (one-thitd direct labor and two thirds indirect labon). d. Depreciation recorded on factory equipment, $62,300. e Other manufacturing overhead costs incurred on occount $85,300. f. Manufacturing ovethead cost was applied to production on the basis of 40,990 machine hours actually worked during the month: 0 . The completed job for 12.800 cuitom-made machined paits was moved into the finished goods warehouse on January 34 to awolt delivery to the customec (In computing the dollar amount for this entyy, remember that the cost of a completed job conzists of direct moteribls, direct labor, and epponed overhead) Required: 1. Prepare joumat enties to record itemb (a) thiough (i) above ponore item (a) for the momem] 2. Prepare Takcoounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T. dccounts. 3. Prepare a joumai entry for item (i) obove. 4. If 90100 of the custom-made nachined parts are shipped to the customer in February, how much of this jobs cost will be included in cost of goods sold for February? Prepore journal entries to record items (b) throogh (t) above [ignore item (g) for the moment] 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your joumat entries to these T. accounts. 3 Prepare a journal entry for item (g) above. 4. If 10,too of the custom-made mactuned parts are shipped to the customer in February, how much of this job's cost will be included in tof goods sold for Februaty? Complete the question by qutering your answers in the tabs below. Propare journal entries to record items (a) through (G) above [ignore item (9) for the momant]. (if co entry is cequilred for a transactionceyent, select "No jearmal antry required" in the first acoount field. Do not round intermediate calculstiong.) Journal entry worksheet Raw materials purchased on account, $311,000 Weces Enker debits bafore rradit. 1. Manufacturing overhead cost was applled to producton on the basis of 40,990 machine-hours octually worked ouring the month 9. The completed ob for 12,800 custom-made machined paits was moved into the finlshed goods warehouse on January 31 to awat delivery to the customer. At computing the dollar amount for this entry, remember that the cost of a completed job consists of direct matenals, direct labor, and appled overheod.) Required: 1. Prepure joumal entries to record items (a) through (f) above [ignore item (g) for the moment] 2. Prepare Taccounts for Manufacturing Overheadiand Work in Process Post the selevant items from your foumal entries to these T. accounts. 3. Prepare a fournal entry for item (g) obove. 4. If 10,100 of the custommade 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. Th Movo ot 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 seld for February? Complete the question by entering your answers in the tabs below. Prepare a joumal entry for iten ( 9 ) above. (if no entry is tequiced for a tiansactionvevent, aelect ' Wo joumal entry requliced" in the first acoount field Journal entry worksheet Pecord the entry to transfec from Wip to Finished goods a. Raw materials purchased on account, $3+1,000 b. Raw materials used in production, $255,000 (80\%s direct moterials and 20 sindirect materials). c. Labor cost acerued in the factory, $156,000 (one -hid ditect labor and two thrds indirect labor) C. Depreciation recorded on foctory equiptient $62,300 e. Other manhacturimg oveihead costs moumred on account, $95,300 1. Marufacturing overhead cost was applied to production on the basis of 40,990 mochine-hauis actualy woiked during the month 0. The completed job for 12,800 custom-made machined ports was moved into the finished goods warehouse on January 31 to awoit delivery to the customer fin computing the dolar amount for this entry, remern ber that the cost of a completed job consists of orect materials, diect labor, and applied oveihead) Required: 1. Prepsre joumal entries to record items (a) thiough (1) above (ugnoce tem ig) for the momients 2. Prepore T-accounts for Manufacturing Ovethesd and Wotk in Process. Post the relevant items from you foumal entries to these T. occounts. 3. Prepare a journal entry for tem (a) above 4 if 10 osoo of the custontmade machined parth ale thipped to the custoner in Febriary; how much of tas job's cost wil be included in cost of goods sold for Felsuary? Complete the question by entering your answers in the tabs bulowi nearest whole dollar amount.)

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