EXERCISE 3-10 Applying Overhead; Journal Entries; T-accounts 1031, Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and epplies overhead cost to jobs on the besis of mechinc-hours. At the beginning of the year, the company used a cost formula to estimate thet it would incur $4,800,000 in manufacturing overhead cost at an gctivity level of 240,000 machinc-hours. The company spent the entire month of January working on a large order for 16,000 cuatom-made machined parts. The company had no work in process at the beginning of January: Cost data relating to January follow: 8. Rew materials purchesed on 8 coount, 5325,000 . b. Rew materials used in production, $290,000(80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory; $180:000 (one-third direct labor and two-thirds indirect labor) d. Depreciation recorded on factory equipment, $75,000. c. Other manufecturing overhead costs incurred on account, $62,000. f. Menufecturing overhead cost was applied to production on the basis of 15,000 machine-hours actually worked during the month. 8. The completed job for 16,000 custom-made machined parts was moved into the finished goods warehouse on Jenuary 31 to await delivery to the customer. In computing the dollar amount for this cntry, 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 Manufecturing Overhead and Work in Process, Post the relevant items from your journal entries to these T. accounts. 3. Prepare a journal entry for item ( 8 ) above. 4. If 10,000 of the custommede machined parts are shipped to the customer in Fobruary, how much of this job's cost will be included in cost of goods sold for Fcbruery