Additional information about Cranes operations in 2020 includes the following:

	Raw materials purchases for the year amounted to $1,945,000. 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.
	Crane 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.
	Crane uses a markup of 150% 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 Cranes costs for 2021.

No.	Account Titles and Explanation	Debit	Credit
1.
	(To record salaries for president, vice president, and corporate secretary)
2.
	(To record salaried factory worker costs)
3.
	(To record hourly factory worker costs)
4.
	(To record depreciation on administrative office equipment)
5.
	(To record depreciation on factory building and equipment)
6.
	(To record administrative office utilities and office supplies expense)
7.
	(To record factory insurance and factory utilities)
8.
	(To record raw materials purchases)
9.
	(To record direct materials and indirect materials used in production)
10.
	(To apply overhead to work in process)
11.
	(To record transfer of completed airplanes)
12.
	(To record sale of airplanes to customers)
13.
	(To record cost of airplanes sold)

Crane Wings, Inc. manufactures airplanes for use in stunt shows. Crane's 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), Crane uses a job order costing system to accumulate product costs. At the end of 2020. Crane's accountants developed the following expectations for 2021 based on the marketing department's sales forecast: Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct materials cost $1,050,000 50.000 8.000 $1.500.000 Crane's inventory count, completed on December 31, 2020, revealed the following ending inventory balances: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $249.000 $625,000 $340,000 The company's 2021 payroll data revealed the following actual payroll costs for the year: Number Employed Wage Rate per Hour Total Hours Worked per Employee Annual Salary per Employee $222,000 $177,000 $40,000 $30.000 1 1 1 Job Title President and CEO Vice president and CFO Factory manager Assistant factory manager Machine operator Security guard, factory Forklift operator Corporate secretary Janitor, factory 5 $15 2.250 2 $20,000 2 $8 2,000 $35,000 1 2 $6 2.150 The following information was taken from Crane's Schedule of Plant Assets. All assets are depreciated using the straight-line method. Plant Asset Factory building Administrative office Factory equipment Purchase Price $4,000,000 $650.000 $2,000,000 Salvage Value $150.000 $125,000 $20.000 Useful Life 20 Years 30 Years 12 Years Other miscellaneous costs for 2020 all paid in cash included: Cost Factory insurance (fully expired) Administrative office utilities Factory utilities Office supplies (fully consumed) Amount $12.000 $5,000 $30,000 $4.000