Determine the total cost associated with a job

Question

A Corporation uses a job-order costing system and a predetermined overhead rate based on machine hours.

The following information pertains to February of the current year:

				Job No. 30	Job No. 40	Job No. 50	Totals
Work in process, February 1				$ 30,000.00	$   40,000.00	$ 60,000.00	$ 130,000.00
February production activity:
Materials requisitioned and used				$ 15,000.00	$   20,000.00	$ 30,000.00	$ 65,000.00
Direct labor costs				$   5,000.00	$   10,000.00	$ 15,000.00	$ 30,000.00
Machine hours				$   1,500.00	$     2,000.00	$   1,000.00	$    4,500.00

At the beginning of the year, the company estimated manufacturing overhead for the year would be $500,000 and machine hours used would be 50,000.

Questions:

1. Compute the predetermined overhead rate.
2. Determine the total cost associated with each job: Job No. 30, Job No. 40 and Job No. 50
3. Give the general journal entry to record when Job 40 was completed.