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

	Job 102	Job 103	Job 104
Direct materials	$ 15,000	$ 33,000	$ 27,000
Direct labor	8,000	14,200	21,000
Overhead applied	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 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 are finished in June, and Job 104 is expected to be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions. (Assume this companys 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.

Direct Materials
Job	May	June	Total
102
103
104
Total
Direct Labor
Job	May	June	Total
102
103
104
Total

3.	What predetermined overhead rate is used during June?

Overhead Rate
Choose Numerator:	/	Choose Denominator:	=	Overhead Rate
Job 102
	/		=	Overhead rate
	/		=
Job 104
	/		=	Overhead rate
	/		=

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Accounts receivable

Average raw materials inventory

Cost of goods sold

Estimated direct labor

Estimated overhead costs

Net sales

Raw materials used

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	$15,000	$8,000
103	33,000	14,200
104	27,000	21,000
Total	$75,000	$43,200

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