Problem 1 Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000. The following information pertains to December of the current year: Job 10 $16,000 Job 12 $38,000 Job 11 Total $80,000 Work-in-process, Dec. 1 The following transactions took place during the month of December 1. 2. Purchased raw materials for $60,000 on credit; Requisitioned and used direct materials for the three jobs: a. b. c. $4,000 for Job 10 $4,800 for Job 11 $7,200 for Job 12 3. 4. Used indirect materials worth $20,000 Incurred direct labor costs as follows: a. b. c. $2,400 for Job 10 $3,600 for Job 11 $4,000 for Job 12 5. 6 Incurred $30,000 worth of indirect manufacturing labor costs. Denreciation on manufacturing nlant and eaminment $21 000