Liliana Richmond started KidCo, Inc. in Albuquerque, New Mexico to produce affordable children's furnishings. The company uses a job-order costing system. KidCo's work-in-process inventory at the end of November consisted of the following jobs. Job No. Description Units Accumulated Cost CBS102 Cribs ..... 20,000 $ 900,000 PLP086 Playpens ..... 15,000 420,000 DRS114 . Dressers 25,000 250,000 Total . $1,570,000 The company's November 30 finished-goods inventory, which is valued using the FIFO (first-in, first-out) method, consisted of five items. Item Quantity and Unit Cost Accumulated Cost Cribs ........ 7,500 units @ $64 each $ 480,000 Strollers 13,000 units @ $23 each 299,000 Carriages 11,200 units @ $102 each 1,142,400 Dressers 21,000 units @ $55 each 1,155,000 Playpens 19,400 units @ $35 each 679,000 Total . $3,755,400 KidCo applies manufacturing overhead on the basis of direct-labor hours. The company's overhead budget for the year totals $4,500,000. The company plans to use 600,000 direct-labor hours during this period, which is the firm's estimated practical capacity. Through the first 11 months of the year, a total of 555,000 direct-labor hours were worked, and total overhead amounted to $4,273,500. At the end of November, the balance in KidCo's Raw-Material Inventory account, which includes both raw material and purchased parts, was $668,000. Additions to inventory and requisitions from inventory during December included the following.Raw Material Purchased Part Purchases $242,000 $396,000 Requisitions: Job CBS102 51,000. 104,000 Job PLP086 3,000 10,800 Job DRS114 124,000 87,000 Job STR077 (10,000 strollers) 62,000 81,000 Job CRG098 (5,000 carriages) 65,000 187,000 During December, KidCo's factory payroll consisted of the following: CBS102 12,000 hr. $122,400 PLP086 4.400 hr. 43,200 DRS114 19,500 hr. 200,500 STR077 3,500 hr. 30,000 CRG098 14,000 hr. 138,000 Indirect labor 3,000 hr. 29,400 Supervision 57,600 Total $621,100The following list shows the jobs that were completed and the unit sales for December. Production Sales Job No, Items Quantity Completed Items Quantity Shipped CBS102 Cribs 17,500 ..... Cribs 20,000 PLP086 Playpens ....4 15,000 Playpens 21,000 STR077 Strollers 10,000 Strollers 14,000 CRG098 18,000 Carriages 5,000 Dressers Carriages 6,000Required: 1. Explain when it is appropriate for a company to use a job-order costing system. 2. Calculate the dollar balance in KidCo's Work-in-Process Inventory account as of December 31. 3. Calculate the dollar amount related to the playpens in KidCo's Finished-Goods Inventory account as of December 31