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 $39,000 13,000 5,070 Job 103 $61,000 27,700 10,803 Job 104 $62,000 40,000 15,600 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $10,000; direct labor, $3,400; and overhead, $1,326. 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. Reg 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 Total 102 $ 0 103 0 104 0 Total Direct Labor Job May June Total 102 $ 0 103 0 104 0 Total < Req 1 and 2 Req3 >

Answer 1

Req 1& 2	Direct Materials
	Job	May	June	Total
	102	10,000	29,000	39,000
	103	-	61,000	61,000
	104	-	62,000	62,000
	Total	10,000	152,000	162,000
	Direct Labor
	Job	May	June	Total
	102	3,400	9,600	13,000
	103	0	27,700	27,700
	104	0	40,000	40,000
	Total	3,400	77,300	80,700
Req 3	Overhead Rate
	Choose Numerator:	/	Choose Denominator:	=	Overhead Rate
	Estimated overhead costs	/	Estimated direct labor	=	Overhead rate
	5,070	/	13,000	=	39.00%
Req 4	Job	Direct Materials	Direct Labor	Applied Overhead	Total Cost	Cost Transferred to Finished Goods
	102	39,000	13,000	5,070	57,070	57,070
	103	61,000	27,700	10,803	99,503	99,503
	104	62,000	40,000	15,600	117,600	-
	Total	162,000	80,700	31,473	274,173	156,573