Quark Spy Equipment Manufactures Espionage Equipment

Essay

Quark Spy Equipment manufactures espionage equipment.Quark uses a job-order costing system and applies overhead to jobs on the basis of direct labor-hours.For the current year,Quark estimated that it would work 100,000 direct labor-hours and incur $20,000,000 of manufacturing overhead cost.The following summarized information relates to January of the current year.The raw materials purchased include both direct and indirect materials. Required:
Prepare journal entries to record Quark's transactions for the month of January.Do not close out the manufacturing overhead account.