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 $35,000 13,000 6,370 Job 103 $57,000 29,400 14,406 Job 104 $49,000 38,000 18,620 Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,100; and overhead, $1,519. 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 Req 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 9,000 $ 35,000 X 44,000 103 57,000 57,000 104 49,000 49,000 Total 9,000 $ 141,000 $ 150,000 Direct Labor Job May June Total 102 3,100 $ 13,000 X 16,100 103 29,400 29,400 104 38,000 38,000 Total $ 3,100 $ 80,400 $ 83,500 Req 1 and 2 Req3 > Req 1 and 2 Reg 3 Reg 4 Using the accumulated costs of the jobs, what predetermined overhead rate is used? Overhead Rate Choose Numerator: Choose Denominator: Overhead Rate Job 102 Estimated overhead costs Estimated direct labor Overhead rate 6,370 7 $ 13,000 49.0% Job 103 Estimated overhead costs Estimated direct labor Overhead rate $ 14,406 $ 29,400 49.0% Job 104 Estimated overhead costs 1 Estimated direct labor Overhead rate $ 18,620 $ 38,000 = 49.0% Dag 1 and 2 Req 1 and 2 Reg 3 Req 4 How much total cost is transferred to finished goods during June? Job Direct Materials Direct Labor Applied Overhead Total Cost Cost Transferred to Finished Goods 102 $ 35,000 $ 13,000 $ 6,370 $ 54,370 $ 67,989 X 103 57,000 29,400 14,406 100,806 100,806 104 49,000 38,000 18,620 105,620 Total $ 141,000 $ 80,400 $ 39,396 $260,796 $ 168,795
