2.

Cullumber Manufacturing Company employs a job order cost system and keeps perpetual inventory records. The following transactions occurred in the first month of operations: 1. Direct materials requisitioned during the month: Job 101 $21,200 Job 102 16,960 Job 103 25,440 $63,600 2. Direct labor incurred and charged to jobs during the month was: Job 101 $33.920 Job 102 29.680 Job 103 21.200 $84,800 3 4. Manufacturing overhead was applied to jobs using a predetermined overhead rate based on 75% of direct labor costs Actual manufacturing overhead costs incurred during the month amounted to $69,960, Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month 5