Basic Job Costing Project
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, Dec. 1
$16,000
$26,000
$38,000
$80,000
The following transactions took place during the month of
December:
1. Purchased raw...