Question

One question with four parts:

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Direct materials Direct labor Overhead applied Job 102 $27,000 12,000 3,960 Job 103 $59,000 26,000 8,580 Job 104 $58,000 44,000 14,520 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $9,000, direct labor, $3,800, and overhead, $1,254. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company's predetermined overhead rate did not change across these months.) 1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs? 3. Using the accumulated costs of the jobs, what predetermined overhead rate is used? 4. How much total cost is transferred to finished goods during June? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4

Answer 1

Req 1&2
		Direct materials
	Job	May	June	total
	102	9,000	18,000	27,000
	103		59,000	59000
	104		58,000	58000
	total	9,000	135,000	144,000
		Direct labor
	Job	May	June	total
	102	3,800	8,200	12,000
	103		26,000	26,000
	104		44,000	44,000
	total	3,800	78,200	82,000
Req 3
	Choose Numerator		/	Choose Denominator		=	OH rate
	Job 102
	overhead cost		/	Direct labor costs		=	overhead rate
	3,960		/	12,000		=	33%
	Job 103
	overhead cost		/	Direct labor costs		=	overhead rate
	8,580		/	26,000		=	33%
	Job 104
	overhead cost		/	Direct labor costs		=	overhead rate
	14,520		/	44,000		=	33%
Req 4		Direct	Direct	applied	total	cost trfd
	Job	materials	labor	overhead	cost	to finished
	102	27,000	12,000	3,960	42,960	42,960
	103	59,000	26,000	8,580	93,580	93,580
	104	58,000	44,000	14,520	116,520	0
	total	144,000	82,000	27,060	253,060	136,540