Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine-hours. At the beginning of the year, the company estimated that it would work 576,000 machine-hours and incur $4,320,000 in manufacturing overhead cost. The company had no work in process at 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:
a. Raw materials purchased on account, $315,000.
b. Raw materials requisitioned for production, $270,000 (80% direct and 20% indirect).
c. Labor cost incurred in the factory, $190,000, of which $80,000 was direct labor and $110,000 was indirect labor.
d. Depreciation recorded on factory equipment, $63,000.
e. Other manufacturing overhead costs incurred, $85,000 (credit Accounts Payable).
f. Manufacturing overhead cost was applied to production on the basis of 40,000 machine-hours actually worked during January.
g. 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, and applied overhead.)

Required:
1. Prepare journal entries to record items (a) through (f) above. Ignore item (g) for the moment.

a. Raw materials purchased on account, $315,000.
Materials (Dr.) 315000
Accounts payable (Cr.) 315000

b. Raw materials requisitioned for production, $270,000 (80% direct and 20% indirect).
Work in process (Dr.) 216000
Factory overhead (Dr.) 54000
Materials (Cr.) 270000

c. Labor cost incurred in the factory, $190,000, of which $80,000 was direct labor and $110,000 was indirect labor.
Work in process (Dr.) 80000
Factory overhead (Dr.) 110000
Wages payable (Cr.) 190000

d. Depreciation recorded on factory equipment, $63,000.
Factory overhead (Dr.) 63000
Accumulated depreciation (Cr.) 63000

e. Other manufacturing overhead costs incurred, $85,000 (credit Accounts Payable).
Factory overhead (Dr.) 85000
Accounts payable (Cr.) 85000

f. Manufacturing overhead cost was applied to production on the basis of 40,000 machine-hours actually worked during January.
Work in process (Dr.) 40000
Factory overhead (Cr.) 40000

g. 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, and applied overhead.)
Finished goods inventory (Dr.) 336000 (216000+80000+40000)
Work in process (Cr.) 336000