EXERCISE 3-10 [LO2-CC4;LO3-CC5;LO4-CC8;LO6- Applying Overhead ; Journal Entries ; T - Accounts CC12 ] Ashville 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 , it was estimated that the company would work 200,000 machine - hours and incur $ 5,600,000 in manufacturing overhead costs . The company spent the entire month of January working on a large order for 12,000 units of 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 , $ 452,000 . b . Raw materials requisitioned for production , $ 390,000 ( 90 % direct materials and the rest indirect materials ) . Labour cost incurred in the factory $ 180,000 ( 60 % indirect labour and the remaining direct labour ) . d . Depreciation recorded on factory equipment , 175,000 e . Other manufacturing overhead costs incurred , $ 92,000 ( credit accounts payable ) . f . Manufacturing overhead cost applied to production on the basis of 15,000 machine - hours actually worked during the month . g . Completed job moved into finished goods warehouse on January 31 to await delivery to customer . ( In computing the dollar amount for this entry , remember that the cost of a completed job consists of direct materials , direct labour , 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). 4. Compute the unit cost that will appear on the job cost sheet.