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Acct240 - Chapter 3 Exercise 3-10 1 a b c d e f. Predetermined Overhead Rate = 3. The cost of the completed job is $ Process T-account in requirement 2 . The journal entry is: 4. The unit product cost for this job would be: So, the portion of this job's costs that would be included in February's cost of goods sold is: 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-thind direct labor and twothirds indirect labor). d. Depreciation recorded on factory equipment, $75,000. e. Other manufacturing overhead costs incurred on account, $62,000. f. Manafacturing overhead cost was applied to production on the basis of 15,000 machine-hours actually worked during the month 2. The completed job for 16,000 custom-made machined parts was moved into the finished goods warchouse on January 31 to await delivery to the customer. (In computing the dollar amount for this eniry, remember that the cost of a completed job consists of direet materials, direct tabor, and apolied overhead.) Required: 1. Prepare journal entries to record items (a) through (n) above limore item ( g ) for the moment]. 2. Prepare Taccounts for Manutacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T. accounts. 3. Prepare a joarnal 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 zoods sold for February

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