Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 Job 103 Job 104 $15,000 $33,000 $27,000 8,000 14,200 21,000 4,000 7,100 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. What was the cost of the raw materials requisitioned in June for each of the three jobs? 2. How much direct labor cost was incurred during June for each of the three jobs? 3. What predetermined overhead rate is used during June? 4. How much total cost is transferred to finished goods during June? Check (4) $81,300 Type here to search o e

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions