Mallory Industries manufactures products using a job order costing system. The company allocates overhead to jobs based on machine hours. At the beginning of the current year, Mallory estimated its annual overhead costs would be $580,000, direct labor hours worked would be 11,000 hours and machine hours utilized would be 14,500 hours. Mallorys wage rate for direct labor is $10/hr. During the month of January, Mallory worked on the jobs listed below. The company purchased $6,000 of materials on account in January. Total manufacturing wages in January were $3,000. Indirect materials used in January were $500 and other factory overhead costs were $5,800. Jobs 120 and 121 were completed during January. Job 120 was shipped to a customer, who was billed $8,900. Materials Cost Direct Labor Hrs. Used Machine Hrs. Used

Job 120 Materials Cost: $2,000, Direct Labor Hrs. Used:65, Machine Hrs. Used: 72

Job 121 Materials Cost: $ 700, Direct Labor Hrs. Used: 15, Machine Hrs. Used: 28

Job 122 Materials Cost: $2,800, Direct Labor Hrs. Used: 80, Machine Hrs. Used: 95

a. What is Mallorys overhead rate?

b. What was the total cost to make Job 120?

c. What was the total cost to make Job 121?

d. What was the total cost to make Job 122?

e. What is the balance in Mallorys Work in Process Account at the end of January?

f. What is the balance in Mallorys Finished Goods Account at the end of January?

g. What was Mallorys Cost of Goods Sold for the month of January?

h. What was Mallorys gross profit for the month of January?