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Posted on Sep 10, 2024

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on

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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 $37,000 14,000 4,200 Job 103 $67,000 25,500 7,650 Job 104 $58,000 46,000 13,800 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $8,000, direct labor, $3,500; and overhead, $1,050. 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? Req 1 and 2 Reg 3 Req 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 102 103 104 Total Direct Labor Job May June Total 102 103 104 Total Req 1 and 2 Req3 Req 4 Using the accumulated costs of the jobs, what predetermined overhead rate is used? Overhead Rate 1 Choose Denominator: = Overhead Rate Choose Numerator: Job 102 Overhead rate Job 103 Overhead rate Job 104 Overhead rate Req 1 and 2 Req 3 Reg 4 How much total cost is transferred to finished goods during June? Job Direct Materials $ 37,000 Total Cost Direct Labor $ 14,000 Applied Overhead Cost Transferred to Finished Goods 102 103 67,000 58,000 104 25,500 46,000 85,500 Total $ Starr Company reports the following information for August. Raw materials purchased on account Direct materials used in production Factory wages earned (direct labor) Overhead rate $82,200 $54,400 $16,400 135% of direct labor cost Prepare journal entries to record the following events. 1. Raw materials purchased. 2. Direct materials used in production. 3. Direct labor used in production. 4. Applied overhead. Journal entry worksheet B C D Record raw materials purchased on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the entry to assign direct materials to jobs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 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 $37,000 14,000 4,200 Job 103 $67,000 25,500 7,650 Job 104 $58,000 46,000 13,800 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $8,000, direct labor, $3,500; and overhead, $1,050. 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? Req 1 and 2 Reg 3 Req 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 102 103 104 Total Direct Labor Job May June Total 102 103 104 Total Req 1 and 2 Req3 Req 4 Using the accumulated costs of the jobs, what predetermined overhead rate is used? Overhead Rate 1 Choose Denominator: = Overhead Rate Choose Numerator: Job 102 Overhead rate Job 103 Overhead rate Job 104 Overhead rate Req 1 and 2 Req 3 Reg 4 How much total cost is transferred to finished goods during June? Job Direct Materials $ 37,000 Total Cost Direct Labor $ 14,000 Applied Overhead Cost Transferred to Finished Goods 102 103 67,000 58,000 104 25,500 46,000 85,500 Total $ Starr Company reports the following information for August. Raw materials purchased on account Direct materials used in production Factory wages earned (direct labor) Overhead rate $82,200 $54,400 $16,400 135% of direct labor cost Prepare journal entries to record the following events. 1. Raw materials purchased. 2. Direct materials used in production. 3. Direct labor used in production. 4. Applied overhead. Journal entry worksheet B C D Record raw materials purchased on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the entry to assign direct materials to jobs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet