Junior Company uses a job-order costing system and a predetermined overhead rate based on machine hours.

At the beginning of the year, the company estimated manufacturing overhead for the year would be $800,000 and machine hours used would be 20,000.

The following information pertains to March of the current year:

Job 20 Job 21 Job 22 Totals

Beginning balance $36,000 $54,000 $60,000 $150,000

Current period costs added:

Direct materials requisitioned (used) $40,000 $45,000 $35,000 $120,000

Direct labor costs $28,000 $40,000 $27,000 $95,000

Current period activity

Machine hours 2,100 2,300 2,600 7,000

Assume that Jobs 20 and 21 are completed during the month and that Job 20 was sold on account for $250,000.

Required:

a. Compute the predetermined overhead application rate for the year.

b. Determine the total cost (including beginning inventory) assigned to each job.

Job 20

Job 21

Job 22

c. Give the journal entry to record the total amount of direct material costs requisitioned (used) on all three jobs.

d. Give the journal entry to record the total amount of overhead applied to all three jobs.

e. Give the journal entry to record the completion of Jobs 20 and 21.

f. Give the journal entries to record (1) the sale and (2) the cost of sale of Job 20.

g. What are the ending balances in these accounts?

i. Work-in-process inventory

ii. Finished goods inventory

iii. Cost of goods sold