Quark Spy Equipment manufactures espionage equipment. Quark uses a job-order cost system and applies overhead to jobs the basis of direct labor-hours. For the current year, Quark estimated that it would work 100,000 direct labor-hours and incur $20,000,000 of manufacturing overhead cost. The following summarized information relates to January of the current year. The raw materials purchased include both direct and indirect materials.

1. Raw materials purchased on account..............................	$1,012,000
2. Direct materials requisitioned into production...............	$999,000
3. Indirect materials requisitioned into production............	$68,000
4. Direct labour cost (10,000 hours @ $30 per hour)..........	$300,000
5. Indirect labour cost (9,000 hours @ $17 per hour)..........	$163,200
6. Depreciation on the factory building...............................	$170,500
7. Depreciation on the factory equipment...........................	$490,700
8. Utilities for the factory....................................................	$66,000
9. Cost of jobs finished........................................................	$2,600,000
10. Cost of jobs sold..............................................................	$2,700,000
11. Sales (all on account)......................................................	$3,300,000

Required

Prepare journal entries to record Quark's transactions for the month of January. Do not close out the manufacturing overhead account.

	Dr.$	Cr. $
1. Raw Materials	Response area
Accounts payable		Response area
Raw materials purchased on account
2. Work in process	Response area
Response area		Response area
Direct materials used in production
3. Response area	68,000
Raw materials		68,000
Indirect materials used in production
4. Work in process	Response area
Response area		Response area
Paid direct labour cost on account
5. Manufacturing overhead	Response area
Salaries/Wages payable		Response area
Paid indirect labour cost on account
6. Manufacturing overhead	170,500
Response area		170,500
Depreciation on the factory building
7. Manufacturing overhead	490,700
Response area		490,700
Depreciation on the equipment
8. Manufacturing overhead	66,000
Response area		66,000
Utilities for the factory are paid on account
9. Response area	2,600,000
Response area		2,600,000
Cost of jobs finished
10. Response area	2,700,000
finished goods		2,700,000
Cost of jobs sold
11. Response area	3,300,000