Natalie uses a job$-$order costing system and a predetermined overhead rate based on direct labor costs.

At the beginning of the year, the company estimated the annual manufacturing overhead and direct labor costs would be $$3,000,000$ and $$6,000,000,$ respectively.

The following information pertains to March of the current year:

Job X Job Y Job Z Totals

Beginning balance

Current period costs added: $$350,000$ $$450,000$ $$550,000$

Direct materials requisitioned $($used$)$ $$250,000$ $$300,000$ $$200,000$ $$750,000$

Direct labor costs $$280,000$ $$270,000$ $$220,000$ $$770,000$

Assume that Jobs X and Y are completed during the month and that Job X was sold on account for

Required:

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

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

Job X Job Y

Job Z

c$.$ What are the ending balances in these accounts?

$1.$ Work$-$in$-$process inventory

ii$.$ Finished goods inventory

$111.$ Cost of goods sold