Yuri Company uses a job-order costing system and a predetermined overhead rate based on direct labor hours.

At the beginning of the year, the company estimated that the annual manufacturing overhead and direct labor hours (DLH) would be $800,000 and 50,000, respectively.

The following information pertains to March of the current year:

J

	Job 20	Job 21	Job 22	Totals
Beginning balance	$36,000	54,000	60,000	150,000
Current period costs added:
Direct materials requisitioned (used)	40,000	45,000	35,000	120,000
Direct labor costs ($20 per DLH)	28,000	40,000	27,000	95,000

Assume that Jobs 20 and 21 are completed during the month and that Job 20 was sold on account for $250,000.

Required:

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

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

Job 20

Job 21

Job 22

c.What are the ending balances in these accounts?

1. Work-in-process inventory
2. Finished goods inventory
3. Cost of goods sold