50.1K

Verified Solution

Link Copied!

Dilon 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 estmate that it would incur $4.267,500 in manufacturing overhead cost at an activity level of 569,000 machine-hours The company spent the entire month of January working on a targe 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: a. Raw moterials putchased on account, $320,000 b. Raw materials used in production, $259.000 (80\% direct materiais and 20% indrect materials). c. Labor cost accrued in the factory, $168,000 (one-third direct labor and two-thirds indirect labor) d. Depreciation recorded on factory equipment, $63700 e Other manufacturing ovethead costs incuited on account, $84,500 I Manufacturing overtead cost was applied to production on the basis of 40,980 machine-hours actually worked during the month 9. The completed job for 12.500 custom-made machined parts was moved into the finshed goods warehouse on January 31 to awart deivery to the customec fin computing the dollat amount for this entry, remember that the cost of a completed job consists of direct matertals, direct labor, and opplied overhed i Required: 1. Prepare joumal entries to record liems (a) through (f) above fignore item (o) for the moment] 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your joumal entries to these T. accounts 3. Prepare a journal entry for ifem (g) above. 4 if 10.200 of the custom-mode machined parts are shipped to the customer in February how much of this job's cost will be included in cost of goods sold for February? Complete the question by entering your onswers in the tabs below. Preparo journal entries to rocord items (a) through (1) above lignore item (9) for the moment). (If no entry is required for a Journal entry worksheet kaw materats parchased on accoutt, $320,000

Answer & Explanation Solved by verified expert

See Answer