Steel 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 November of the current year:

\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Job 10\quad\quad Job 11\quad\quad Job 12 } \quad \text { Total }

\text { Work-in-Process Inventory, Nov. } 1 \quad \$ 16,000 \quad \$ 26,000 \quad \$ 38,000 \quad \$ 80,000

December production activity:

\begin{array} { l r r r r } \text { Materials requisitioned } & \$ 4,000 & \$ 4,800 & \$ 7,200 & \$ 16,000 \\\text { Direct labour cost } & \$ 2,400 & \$ 3,600 & \$ 4,000 & \$ 10,000 \\\text { Machine hours } & 400 & 700 & 900 & 2,000 \\\text { Labour hours } & 120 & 180 & 200 & 500\end{array}

Actual manufacturing overhead cost incurred in November was $61,000.
Required:
A. Compute the predetermined overhead application rate.
B. Determine the total cost associated with each job.
C. If Jobs 10 and 12 were completed, prepare the journal entry to move the cost.
D. If Job 10 was delivered to customers that paid $50,000 cash, prepare the journal entries.
E. Using the same assumption as D, calculate the gross profit for Job 10.
F. Using the same assumption as C, calculate the cost assigned to ending Work-in-Process Inventory.
G. Assuming no beginning Finished Goods Inventory and the same assumptions as A through F, calculate the cost assigned to ending Finished Goods Inventory.
H. How much was overhead overapplied or underapplied?

In What Order Do Cost Elements Flow Through Accounts Until

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