Question

please answer 1-4.

Exercise 02-3 Analyzing of cost flows LO C2 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 $15,000 3.000 4,000 Job 103 $33,000 14,200 7,100 Job 104 $27,000 21.000 10,500 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $6,000: direct labor, $1,800; and overhead, $900. 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.

Answer 1

Req 1&2
		Direct materials
	Job	May	June	total
	102	6,000	9,000	15,000
	103		33,000	33000
	104		27,000	27000
	total	6,000	69,000	75,000
		Direct labor
	Job	May	June	total
	102	1,800	6,200	8,000
	103		14,200	14,200
	104		7,100	7,100
	total	1,800	27,500	29,300
Req 3
	Choose Numerator		/	Choose Denominator		=	OH rate
	Job 102
	overhead cost		/	Direct labor costs		=	overhead rate
	4,000		/	8,000		=	50%
	Job 103
	overhead cost		/	Direct labor costs		=	overhead rate
	7,100		/	14,200		=	50%
	Job 104
	overhead cost		/	Direct labor costs		=	overhead rate
	10,500		/	21,000		=	50%
Req 4		Direct	Direct	applied	total	cost trfd
	Job	materials	labor	overhead	cost	to finished
	102	15,000	8,000	4,000	27,000	27,000
	103	33,000	14,200	7,100	54,300	54,300
	104	27,000	21,000	10,500	58,500	0
	total	75,000	43,200	21,600	139,800	81,300