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 $17,000 16,000 5,280 Job 103 $53,000 27,100 8,943 Job 104 $53,000 40,000 13,200 Job 102 was started in production in May and the following costs were assigned to it in May: direct materials. $8,000; direct labor. $2,900; and overhead, $957. 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 Reg 3 Reg 4 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? Direct Materials Job May June

Answer 1

1989 Colt Cast . Job. of law material and Labour Direct material May . 8000 89000 8 53000 $53000 8 8000 8 115ooo 103 Total $ 17,000 $ 53,000 $ 53,000 $423,000 104 Total Job 102 103 Direet may $ 2900 Labour June $ 13100 $ 27,100 $ 40000 880200 Total & 16000 $ 27,100 $ 40,002 1883, 100 Totul 8 2900 is started in may Hence June cast = overhead pater and completed Total Cost - may cost Noter Job 102 in June (2) Predetrimed - Choose Numenator Job 102 8 5280 Overhead late I Denominator (Per Labout cost I overhead late $ 16000 0133 Job 103 $ 8943 $ 27,100 0.33 Job loy & 13200 $ 40,000 0.33

Job Total Cost transferred to finished Goods during June tot Direct material Direct Labour Applied or Total Cost Cost transferrea $ 17000 $16000 $5980 $38280 8 38280 53000 27700 8943 89043 8 59043 53000 I 40,000 13200 1062oo ev.lp 8 123,000 $ 83100 8.97423 233593 0127323 Total Henre Noter Jobirloy is Completed it is in work in lost Transferred to finished in July progress Goods > Job 102 and Job. 03