Under Pick Co.’s job order costing system manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January 2005, Pick’s transactions included the following:

Direct materials issued to production

$ 90,000

Indirect materials issued to production

8,000

Manufacturing overhead incurred

125,000

Manufacturing overhead applied

113,000

Direct labor costs

107,000

Pick had neither beginning nor ending work in process inventory. What was the cost of jobs completed in January 2005?

  1. $302,000
  2. $310,000
  3. $322,000
  4. $330,000