Job Costing with Predetermined Overhead Rate TruCut Mowe ware and department stores. TruCut uses a job cost system and treats each customer's order as a separate job. The primary mower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis; the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July TruCut had the following work-in-process inventories: r Company manufactures a variety of gasoline-powered mowers for discount hard- 16,000 Total