PRACTICE PROBLEM OF JOB ORDER COSTING The company using Job Order Costing. The company uses a JIT Inventory management system. Consequently, it does not have raw material inventory. Raw material purchases are recorded directly in the WIP Inventory account. The cost of Job presented below JOBS Direct Materials Direct Labor Manufacturing Overhead Applied Job A Job B Job C Job A Job B Job C Total Cost Sold Price $1,500 $3,000 $3,000 $4,000 $6,000 $4,000 Record 1. Paid DM for each jobs. 2. Paid DL for each jobs. 3. Record predeterminated manufacturing overhead rate applied for $1.50 per DLC. 4. Actual manufacturing cost overhead amounted to $19,400. 5. The company complete all jobs. 6. The company delivered to the customers the Job A and Job C. 7. The Job A was sold at 125% of the cost. 8. The Job C was sold at 155% of the cost. 9. The company paid selling expenses for $5,000. 10. The company paid administrative expenses for $3,400. 11. Record the over-or-under applied against cost of goods sold