Please complete part C only

Marigold Wings, Inc. manufactures airplanes for use in stunt shows. Marigold's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Marigold uses a job order costing system to accumulate product costs. At the end of 2016, Marigold's accountants developed the following expectations for 2017 based on the marketing department's sales forecast Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct materials cost $1,079,000 47,000 12,000 $1,520,000 Marigold's inventory count, completed on December 31, 2016, revealed the following ending inventory balances Raw Materials Inventory Work in Process Inventory Finished Goods Invento $249,000 $626,000 $1,810,000 The company's 2017 payroll data revealed the following actual payroll costs for the year: Number Employe Rate Annual Salary per Total Hours Worked Wage Job Title Tm President and CEO Vice president and CFO Factory manager Assistant factory manager Machine operator $224,000 $178,000 $40,700 $30,300 2,250 2,000 2,150 $14.5 guard, factory $20,700 Forklift operator Corporate secreta anitor,facto $7.5 36,700 The following information was taken from Marigold's Schedule of Plant Assets. All assets are depreciated using the straight-line method Salvage Value Use Plant Asset Factory building Administrative office Factory equipment $150,000 20 Years $125,000 30 Years $20,000 12 Years $650,000 Other miscellaneous costs for 2017 all paid in cash included in Cost Factory insurance (fully expired) Administrative office utilities Factory utilities Office supplies (fully consumed) $12,000 $5,900 $31,000 $5,600 Additional information about Marigold's operations in 2017 includes the following Raw materials purchases for the year amounted to $1,949,000. All materials were purchased The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials Marigold 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 * Marigold 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.)