The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 16,100 Indirect labor 141,000 Property taxes, factory 9,100 Utilities, factory 81,000 Depreciation, factory 149,700 Insurance, factory 11,100 Total actual manufacturing overhead costs incurred $ 408,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 411,000 Direct labor cost $ 71,000 Inventories: Raw materials, beginning $ 21,100 Raw materials, ending $ 31,100 Work in process, beginning $ 41,100 Work in process, ending $ 71,100 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,800 machine-hours were used during the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year.

Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,305,000 in manufacturing overhead cost at an activity level of 574,000 machine-hours.

The company spent the entire month of January working on a large order for 12,500 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow:

Raw materials purchased on account, $313,000.

Raw materials used in production, $264,000 (80% direct materials and 20% indirect materials).

Labor cost accrued in the factory, $171,000 (one-third direct labor and two-thirds indirect labor).

Depreciation recorded on factory equipment, $63,600.

Other manufacturing overhead costs incurred on account, $86,000.

Manufacturing overhead cost was applied to production on the basis of 40,630 machine-hours actually worked during the month.

The completed job for 12,500 custom-made machined parts was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.)

Required:

1. Prepare journal entries to record items (a) through (f) above [ignore item (g) for the moment].

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T-accounts.

3. Prepare a journal entry for item (g) above.

4. If 10,500 of the custom-made machined parts are shipped to the customer in February, how much of this jobs cost will be included in cost of goods sold for February?