Hello,

Could you please, help me with this?

Please, do not use pictures. Thank you so much!

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

Raw Material Inventory (include direct and indirect material) $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 #76 116,800

Job #77 346,300

The following transactions occurred during December:

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

Job #75 $144,800

Job #76 126,300

Job #77 496,100

Job #78 156,200

Indirect material 26,600

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

Job #75 4,830 direct labor hours (DLHs) $42,300

Job #76 13,160 DLHs $133,600

Job #77 10,150 DLHs $101,500

Job #78 5,140 DLHs $55,400

Indirect labor wages $45,700

3. The firm applied manufacturing overhead to jobs at a rate of $3.50 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. Close under- or over-applied manufacturing overhead to Cost of Goods Sold

Required:

1. Determine the following items.Be sure to show supporting calculations to earn points.
2. The total cost for each of the following jobs: #75, #76, #77, and #78, as of December 31
3. The total manufacturing cost for December
4. The cost of goods manufactured (i.e., cost of jobs completed) for December
5. The cost of goods sold for December (before adjustment due to under/over-applied overhead)
6. The balance of Work-in-Process Inventory as of December 31
7. The balance of Finished Goods Inventory as of December 31
8. The amount of under- or over-applied manufacturing overhead for December

1. 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.