use the work provided from picture 1-2 to solve the 5 questions found on picture 3

work (pages 1-2)

questions (page 3)

EXERCISE 3-10 APPLYING OVERHEAD; JOURNAL, ENTRIES; T-ACCOUNTS 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 $4,800,000 in manufacturing overhead cost at an activity level of 240,000 machine-hours. The company spent the entire month of January working on a large order for 16,000 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw materials purchased on account, $325,000. b. Raw materials used in production, $290,000 ( 80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory, $180,000 (one-third direet labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $75,000. c. Other manufacturing overhead costs incurred on account, $62,000. f. Manufacturing overhead cost was applied to production on the basis of 15,000 machinehours actually worked during the month. g. The completed job for 16,000 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 10,000 of the custom-made 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? Cost of Goods Manufactured - $592,000 Cost of goods sold =$592,000/16,00010,000=$370,000 QUESTION 2 Calculate the amount of direct materials that are part of this job. QUESTION 3 Manufacturing Overhead was overapplied during the month of January. True False QUESTION 4 Calculate the amount of actual overhead incurred during January. QUESTION 5 Calculate the balance in Work in Process inventory after all transactions for January have been posted