Question

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 $18,000 14,000 6,580 Job 103 $55,000 27,000 12,690 Job 184 $48,888 42,000 19,740 Job 102 was started in production in May and the following costs were assigned to it in May, direct materials. $13,000, direct labor. $3,600, and overhead, $1,692. 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) 182. 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.

Answer 1

Req 1&2
		Direct materials
	Job	May	June	total
	102	13,000	5,000	18,000
	103		55,000	55000
	104		48,000	48000
	total	13,000	108,000	121,000
		Direct labor
	Job	May	June	total
	102	3,600	10,400	14,000
	103		27,000	27,000
	104		42,000	42,000
	total	3,600	79,400	83,000
Req 3
	Choose Numerator		/	Choose Denominator		=	OH rate
	Job 102
	overhead cost		/	Direct labor costs		=	overhead rate
	6,580		/	14,000		=	47%
	Job 103
	overhead cost		/	Direct labor costs		=	overhead rate
	12,690		/	27,000		=	47%
	Job 104
	overhead cost		/	Direct labor costs		=	overhead rate
	19,740		/	42,000		=	47%
Req 4		Direct	Direct	applied	total	cost trfd
	Job	materials	labor	overhead	cost	to finished
	102	18,000	14,000	6,580	38,580	57,300
	103	55,000	27,000	12,690	94,690	94,516
	104	48,000	42,000	19,740	109,740	0
	total	121,000	83,000	39,010	243,010	151,816