managerial accounting 382328

Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job ordercosting systemand applies overhead costs 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 $4,320,000 in manufacturing overhead cost at an activity level of 576,000 machine hours.

The company had nowork in processat the beginning of the year. The company spent the entire month of January working on one large order—Job 382, which was an order for 8,000 machined parts. Cost data for January follow:

Manufacturingoverhead costwas applied to production on the basis of 40,000 machine hours actually worked during January.

The completed job 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, andappliedoverhead.)

Prepare journal entries to record items (a) through (f) above. Ignore item (g) for the moment.(Do not round intermediate calculations.)

Prepare T accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T accounts.(Do not round intermediate calculations. Record the transactions in the given order.)

Compute the unitproduct costthat will appear on the job cost sheet for Job 382.(Do not round intermediate calculations. Round your answer to 2 decimal places.)