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 Job 102 $15,000 8,000 4,000 Job 103 $33,000 14,200 7,100 Job 104 $27,000 21,000 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). Complete the given below table 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 Direct Labor Job May June Total 102 103 104 $6,000 $9,000 33,000 27,000 $15,000 33,000 27,000 102 103 104 $1,800 $6,200 $8,000 14,200 14,200 21,000 21,000 What predetermined overhead rate is used during June for Job 102? Job Order Costing Homework 1 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 Job 102 $15,000 8,000 4,000 Job 103 $33,000 14,200 7,100 Job 104 $27,000 21,000 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). How much total cost is transferred to finished goods during June? Job Order Costing Homework 2 Starr Company reports the following information for August. Raw materials purchased on account Direct materials used in production Direct labor incurred, but not yet paid Overhead rate Prepare journal entries to record the following events. 1. Raw materials purchased. 2. Direct materials used in production. 3. Direct labor used in production, but not yet paid. 4. Applied overhead. $76,200 $48,000 $15,350 120% of direct labor cost Job Order Costing Homework 3 In December 2016, Shire Computers management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $747,500 of overhead costs and $575,000 of direct labor cost in year 2017. During March 2017, Shire began and completed Job No. 13-56. 1) What is the predetermined overhead rate for 2017? 2) Use the information on the following job cost sheet to determine the total cost of Job 13-56. JOB COST SHEET Customer's Name Keiser Co. Job No. 13-56 Job Description 5 plasma monitors - 61 inch Date Direct Materials Req. No. Amount Direct Labor Time-Ticket Amount OH Costs Applied Rate Amount Mar. 8 Mar. 11 Mar. 18 4-129 4-142 4-167 $5,000 7,020 3,330 $15,350 T-306 T-307 T-308 $700 1,250 1,250 $3,200 130% $4,160 Job Order Costing Homework 4 The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order cost accounting system. Inventories Raw materials Work in process Finished goods Activities and information for May: Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs April 30 $43,000 10,200 63,000 May 31 $52,000 21,300 35,600 210,000 345,000 15,000 80,000 120,000 1,400,000 70% Sales (received in cash) Predetermined overhead rate based on direct labor cost Compute the following amounts for the month of May using T-accounts. 1) Costofdirectmaterialsused 2) Costofdirectlaborused 3) Cost of goods manufactured 4) Cost of goods sold 5) Gross profit 6) Overapplied or underapplied overhead

Accounting 2 Homework