Creative Ventures uses a job order costing system. On December $1,$ the company had the following account balances:

Raw Materials Inventory $($includes direct and indirect materials$)$ $$166,200$

Work$-$in$-$Process Inventory $756,300$

Finished Goods Inventory $432,000$

On December $1,$ Job #$74$ was the only job in Finished Goods $($FG$)$ Inventory. On the same date, the three jobs in Work$-$in$-$Process $($WIP$)$ Inventory had the following balances:

Job #$75$ $ $293,200$

Job #$76116,800$

Job #$77346,300$

The following transactions occurred during December:

$1.$ Issued $$950,000$ of raw materials as follows:

Job #$75$ $$144,800$

Job #$76126,300$

Job #$77496,100$

Job #$78156,200$

Indirect materials $26,600$

$2.$ Prepared and paid $$378,500$ factory payroll for the month. Analysis of this payroll showed the following information.

Job #$754,830$ direct labor hours $($DLHs$)$ $$42,300$

Job #$7613,160$ DLHs $$133,600$

Job #$7710,150$ DLHs $$101,500$

Job #$785,140$ DLHs $$55,400$

Indirect labor wages $$45,700$

$3.$ The firm applied manufacturing overhead to jobs at a rate of $$3\mathrm{.}50$ per direct labor hour $($DLH$).$

$4.$ Jobs #$75$ and #$76$ were completed during the month.

$5.$ Jobs #$74$ and #$75$ were shipped and accepted by the customers.

$6.$ Incurred other manufacturing overhead for December:

$$ Factory utilities cost, $$9,800.$

$$ Depreciation of manufacturing property, plant, and equipment, $$24,500.$

$$ Property taxes for the factory building, $$6,500.$

$$ Insurance costs for manufacturing assets, $$2,400$ per month.

$7.$ Closed under$-$ or over$-$applied manufacturing overhead to Cost of Goods Sold.

Required:

A$.$ Determine the following items. Be sure to show supporting calculations to earn points.

a$.$ The total cost for each of the following jobs: #$75,$ #$76,$ #$77,$ and #$78,$ as of December $31$

b$.$The total manufacturing cost for December

c$.$The cost of goods manufactured $($i$.$e$.,$ cost of jobs completed$)$ for December

d$.$ The cost of goods sold for December $($before adjustment due to under$/$over$-$applied overhead$)$

e$.$The balance of Work$-$in$-$Process Inventory as of December $31$

f$.$ The balance of Finished Goods Inventory as of December $31$

g$.$ The amount of under$-$ or over$-$applied manufacturing overhead for December

B$.$The firm uses a predetermined overhead rate to apply overhead to jobs. Discuss why the firm needs to use applied overhead instead of actual overhead to compute the cost of each job.