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	Job 11	Job 12	Total
Work-in-process, December 1	$16,000	$26,000	$38,000	$80,000
December production activity
Machine hours	400	700	900	2,000
Labor hours	120	180	200	500
Direct materials transferred to production	$4,000	$4,800	$7,200	$16,000
Direct labor costs incurred	$2,400	$3,600	$4,000	$10,000
Actual manufacturing overhead cost incurred in December was $61,000.
Required:
a. Compute the predetermined overhead rate.
b. Determine the total cost associated with each job.
c. Jobs 10 and 12 were completed, prepare the journal entry to transfer the costs.
d. Job 10 was sold to customers that paid $50,000 cash, prepare the journal entries.
e. What is the cost assigned to ending work in process?
f. Assuming no beginning finished goods, what is the cost assigned to ending finished goods?
g. How much was overhead over/underapplied? Prepare the journal entry to charge under/overapplied overhead to cost of goods sold.