Sheffield Wings, Inc. manufactures airplanes for use in stunt shows. Sheffields 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), Sheffield uses a job order costing system to accumulate product costs. At the end of 2016, Sheffields accountants developed the following expectations for 2017 based on the marketing departments sales forecast:

Budgeted overhead cost		$1,093,000
Estimated machine hours		49,000
Estimated direct labor hours		10,000
Estimated direct materials cost		$1,520,000

Sheffields inventory count, completed on December 31, 2016, revealed the following ending inventory balances:

Raw Materials Inventory		$251,000
Work in Process Inventory		$626,000
Finished Goods Inventory		$2,390,000

The companys 2017 payroll data revealed the following actual payroll costs for the year:

Job Title		Number Employed		Wage Rate per Hour		Annual Salary per Employee		Total Hours Worked per Employee
President and CEO		1				$228,000
Vice president and CFO		1				$178,000
Factory manager		1				$41,000
Assistant factory manager		1				$31,800
Machine operator		5		$14.5				2,250
Security guard, factory		2				$20,600
Forklift operator		2		$7.5				2,000
Corporate secretary		1				$36,800
Janitor, factory		2		$6				2,150

The following information was taken from Sheffields Schedule of Plant Assets. All assets are depreciated using the straight-line method.

Plant Asset		Purchase Price		Salvage Value		Useful Life
Factory building		$4,000,000		$150,000		20 Years
Administrative office		$650,000		$125,000		30 Years
Factory equipment		$2,000,000		$20,000		12 Years

Other miscellaneous costs for 2017 all paid in cash included:

Cost		Amount
Factory insurance (fully expired)		$13,300
Administrative office utilities		$5,300
Factory utilities		$31,000
Office supplies (fully consumed)		$6,000

Additional information about Sheffields operations in 2017 includes the following:

	Raw materials purchases for the year amounted to $1,947,000. 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.
	Sheffield 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.
	Sheffield 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.) Prepare the journal entries to record Sheffields costs for 2017. (Use Salaries Payable and Wages Payable accounts for payroll costs.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Post entries in order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)