Problem #3: Job-Order Costing (32 points) Padma Custom Kitchens Inc. primarily produces goods to meet specific customer orders. The Company accumulates its product costs using a job-order cost system. Upon the receipt and approval of a customer order, the production manager enters the order information into the production cost system. The system generates the job # and a job cost sheet record for the order and adds the job to the production schedule. Padma Custom Kitchens Inc. uses a traditional normal costing approach to allocate manufacturing overhead from a single cost pool to individual jobs and work in-process. The Company applies overhead using a factory-wide predetermined overhead rate based on direct labor hours used at a rate of $25.00 per direct labor hours for 2017. August 2017 Production Padma Custom Kitchens Inc. shuts down its factory operations every July for vacations and two weeks of maintenance and repairs. The Company completes all jobs in process before closing for the month Consequently, when it re-opens each August, Padma Custom Kitchens Inc. starts work on entirely new obs because it has no jobs in progress from June and therefore no work in-process inventory. In August 2017 Padma Custom Kitchens Inc. worked on three new jobs for customer orders received in July. Presented on the following page is a summary of the August production costs (excluding applied overhead) and related-data by Job # as accumulated and reported in their job-order cost records. Problem #3: Job-Order Costing (32 points) Padma Custom Kitchens Inc. primarily produces goods to meet specific customer orders. The Company accumulates its product costs using a job-order cost system. Upon the receipt and approval of a customer order, the production manager enters the order information into the production cost system. The system generates the job # and a job cost sheet record for the order and adds the job to the production schedule. Padma Custom Kitchens Inc. uses a traditional normal costing approach to allocate manufacturing overhead from a single cost pool to individual jobs and work in-process. The Company applies overhead using a factory-wide predetermined overhead rate based on direct labor hours used at a rate of $25.00 per direct labor hours for 2017. August 2017 Production Padma Custom Kitchens Inc. shuts down its factory operations every July for vacations and two weeks of maintenance and repairs. The Company completes all jobs in process before closing for the month Consequently, when it re-opens each August, Padma Custom Kitchens Inc. starts work on entirely new obs because it has no jobs in progress from June and therefore no work in-process inventory. In August 2017 Padma Custom Kitchens Inc. worked on three new jobs for customer orders received in July. Presented on the following page is a summary of the August production costs (excluding applied overhead) and related-data by Job # as accumulated and reported in their job-order cost records