Dillon Products manufactures various machined parts to customerspecifications. The company uses a job-order costing system andapplies overhead cost to jobs on the basis of machine-hours. At thebeginning of the year, the company used a cost formula to estimatethat it would incur $4,215,000 in manufacturing overhead cost at anactivity level of 562,000 machine-hours.

The company spent the entire month of January working on a largeorder for 12,400 custom-made machined parts. The company had nowork in process at the beginning of January. Cost data relating toJanuary follow:

1. Raw materials purchased on account, $319,000.
2. Raw materials used in production, $256,000 (80% directmaterials and 20% indirect materials).
3. Labor cost accrued in the factory, $153,000 (one-third directlabor and two-thirds indirect labor).
4. Depreciation recorded on factory equipment, $63,900.
5. Other manufacturing overhead costs incurred on account,$85,400.
6. Manufacturing overhead cost was applied to production on thebasis of 40,760 machine-hours actually worked during themonth.
7. The completed job for 12,400 custom-made machined parts wasmoved into the finished goods warehouse on January 31 to awaitdelivery to the customer. (In computing the dollar amount for thisentry, remember that the cost of a completed job consists of directmaterials, 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 inProcess. Post the relevant items from your journal entries to theseT-accounts.

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

4. If 10,400 of the custom-made machined parts are shipped tothe customer in February, how much of this job’s cost will beincluded in cost of goods sold for February