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1. 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 bassis 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: 1. Raw materials purchased on account, $452,000. 2. Raw materials requisitioned for production, $390,000 ( 90% direct materials and the rest indirect materials). 3. Labour cost incurred in the factory, $180,000(60% indirect labour and the remaining direct labour). 4. Depreciation recorded on factory equipment, $175,000. 5. Other manufacturing overhad costs incurred, $92,000 (credit accounts payable). 6. Manufacturing overhead cost applied to production on the bassis of 15,000 machine-hours actually worked during the month. 7. 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.) 1. 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 bassis 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: 1. Raw materials purchased on account, $452,000. 2. Raw materials requisitioned for production, $390,000 ( 90% direct materials and the rest indirect materials). 3. Labour cost incurred in the factory, $180,000(60% indirect labour and the remaining direct labour). 4. Depreciation recorded on factory equipment, $175,000. 5. Other manufacturing overhad costs incurred, $92,000 (credit accounts payable). 6. Manufacturing overhead cost applied to production on the bassis of 15,000 machine-hours actually worked during the month. 7. 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.)