SHOW THE CALCULATIONS

Creative Ventures uses a job order costing system. On December 1 , the company had the following account balances: On December 1, Job \#74 was the only job in Finished Goods (FG) Inventory. On the same date, the three jobs in Work-in-Process (WIP) Inventory had the following balances: The following transactions occurred during December: 1. Issued $950nnf raw matarial ac fnllnwe 2. Prepared and paid $378,500 factory payroll for the month. Analysis of this payroll showed the followino information 3. The firm applied manufacturing overhead to jobs at a rate of $3.50 per direct labor hour (DLH). 4. Jobs #75 and \#76 were completed during the month. 5. Jobs \#74 and \#75 were shipped and accepted by the customers. 6. Incurred other manufacturing overhead for December: - Factory utilities cost, $9,800. - Depreciation of manufacturing property, plant, and equipment, $24,500. - Property taxes for the factory building, $6,500. - Insurance costs for manufacturing assets, $2,400 per month. 7. Close under- or over-applied manufacturing overhead to Cost of Goods Sold A. Determine the following items. Be sure to show supporting calculations to earn points. a. (5 points) The total cost for each of the following jobs: \#75, \#76, \#77, and \#78, as of December 31 b. (2.5 points) The total manufacturing cost for December c. (3 points) The cost of goods manufactured (i.e., cost of jobs completed) for December d. (2.5 points) The cost of goods sold for December (before adjustment due to under/overapplied overhead) e. (2.5 points) The balance of Work-in-Process Inventory as of December 31 f. (2.5 points) The balance of Finished Goods Inventory as of December 31 g. (3 points) The amount of under- or over-applied manufacturing overhead for December B. (4 points) The firm uses a predetermined overhead rate to apply overhead to jobs. Discuss why the firm needs to use applied overhead instead of actual overhead to compute the cost of each job