3. Ralph Inc. 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 the machine hours would be 8,000. The following information pertains to August of the current year. Actual overhead cost incurred in August was $61,000. Job A $16,000 Job B $26,000 Job C $38,000 Work in Process, Aug. 1 August production activities: Materials requisitioned Direct labor cost Machine hours Direct labor hours $4,000 $2,400 400 120 $4,800 $3,600 700 $7,200 $4,000 900 200 (1) Compute the predetermined overhead rate. (2) Determine the cost of each job at the end of August. (3) Prepare the journal entries pertaining to Job A during the month of August. (4) If Job A and Job C were complete, journalize the transaction. (5) Prepare the statement of goods manufactured at the end of August. (6) If only Job A was delivered to customers that paid $50,000 cash, journalize the transactions. What is the gross profit for Job A? (7) Determine the cost of goods sold for the month of August.

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