1. Describe when it is appropriate for a company to use a job costing system.
2. Calculate the balance in OtobiFurn’s work in process inventory account as at 31 December.
3. Calculate the cost of the chairs in OtobiFurn’s finished goods inventory as at 31 December.
4. Actual manufacturing overhead incurred in December amounted to $252 000. Calculate
OtobiFurn’s overapplied or underapplied overhead balances when using a job costing system.
5. Explain two alternative accounting treatments for overapplied or underapplied overhead
balances when using a job costing system.
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