Budgeted overhead cost Estimated machine hours 40,000 Estimated direct labor hours 11,000 Estimated direct materials cost $1, 500,000 Concord's inventory count, completed on December 31, 2016, revealed the following ending inventory balances: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $251,000 $627,000 $570,000 The company's 2017 payroll data revealed the following actual payroll costs for the year: Job Title President and CEO Vice president and CFO Factory manager Assistant factory manager Machine operator Security guard, factory Forklift operator Corporate secretary Janitor, factory Number Employed 1 1 1 1 5 2 2 1 2 Wage Rate per Hour $14.5 $7.5 $6 Annual Total Hours Salary per Worked per Employee Employee $224,000 $178,000 $40,400 $31,800 $20,500 $36,100 2,250 2,000 2,150 The following information was taken from Concord's Schedule of Plant Assets. All assets are depreciated using the straight-line method. Plant Asset Factory building Administrative office Factory equipment Purchase Price Salvage Value Useful Life $650,000 $150,000 $125,000 $20,000 20 Years 30 Years 12 Years Other miscellaneous costs for 2017 all paid in cash included: Cost Amount Factory insurance (fully expired) $12,800 Administrative office utilities Factory utilities $5,500 $32,700 Office supplies (fully consumed) $5,400 Additional information about Concord's operations in 2017 includes the following: Raw materials purchases for the year amounted to $1,949,000. All materials were purchased on account. The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials. Concord applied overhead to Work in Process Inventory based on direct materials cost. Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory. Concord uses a markup of 80% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account. (Note: This transaction requires two journal entries.)