Reganne Company 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 $750,000 and machine hours used would be 50,000.

The following information pertains to March of the current year:

	Job D	Job E	Job F	Totals
Beginning balance	$35,000	$45,000	$55,000	$135,000
Current period costs added:
Direct materials requisitioned (used)	$25,000	$30,000	$20,000	$75,000
Direct labor costs	$28,000	$27,000	$22,000	$77,000
Current period activity
Machine hours	1,400	2,400	2,200	6,000

Assume that Jobs D and E are completed during the month and that Job D was sold on account for $180,000.

Required:

a. Compute the predetermined overhead application rate for the year.

b. Determine the total cost (including beginning inventory) assigned to each job.

Job D

Job E

Job F

c. Give the journal entry to record the total amount of direct material costs requisitioned (used) on all three jobs.

d. Give the journal entry to record the total amount of overhead applied to all three jobs.

e. Give the journal entry to record the completion of Jobs D and E.

f. Give the journal entries to record (1) the sale and (2) the cost of sale of Job D.

g. What are the ending balances in these accounts?

i. Work-in-process inventory

ii. Finished goods inventory

iii. Cost of goods sold