Please see attached document and provide thorough step-by-step solution answers to the following:

Required:

1.Describe when it is appropriate for a company to use a job-order costing system.

2.Calculate the balance in CompuFurn, Inc.'s Work-in-Process Inventory account as of December 31.

3.Calculate the cost of the chairs in CompuFurn, Inc.'sfinished-goods Inventoryas of December 31.

4.Actual manufacturing overheadincurred in December amounted to $252,000. Calculate CompuFurn's overapplied or underapplied overhead for the year.

5.Explain two alternative accounting treatments for overapplied or underapplied overhead balances when using a job-order costing system.