Horton Company uses ajobcosting system, and manufacturing overhead is appliedon thebasisofmachine hours.Atthe beginningof theyear, management estimated that the company would incur $1,050,000of manufacturingoverhead costs and use 70,000machinehours.

Horton Company recorded the following events during the monthofMarch.

(a)Beginning balances:

Raw materials inventory (RM): $100,000 Work in process inventory (WIP): $150,000 Finished goods inventory (FGs): $30,000

(b)Purchased 200,000 kilogramsof rawmaterials on account. The cost was $4.00perkilogram.

(c) Issued 150,000 kilogramsofmaterials to production. Assume all materialsissuedare at $4perkilogram.

(d) Incurred $250,000ofdirect labour costs and $50,000ofindirect labour costs.

(e) Recorded depreciation on equipment for the month, $18,000.

(f) Recorded $42,000ofinsurance costs for the manufacturing property.

(g)Recorded$35,000 for utilities andothermiscellaneous items forthe manufacturingplant.

(h) Completedjob Ml1costing $170,000 andjobM12 costing $800,000 duringthe monthand transferred them to Finished Goods inventory account.

(i) ShippedjobM12 to the customerduringthe month. (j) Used 10,000 machine hours during March.