Exercise 15-3 Analysis of cost flows LO C2 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 $33,000 16.000 5,440 Job 103 $47.000 28.500 9.690 Job 104 $62.000 40.000 13.600 Job 102 was started in production in May and the following costs were assigned to it in May, direct materials, $14,000; direct labor, $3,400; and overhead, $1,156. 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.) 182. 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 Juhe? Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for cach of the three jobs? Direct Materials Exercise 15-5 Manufacturing cost flows LO P1, P2, P3 Custom Cabinetry has one job in process (Job 120) as of June 30, at that time, its job cost sheet reports direct materials of $6,300, direct labor of $3,500, and applied overhead of $3,150. Custom Cabinetry applies overhead at the rate of 90% of direct labor cost. During July, Job 120 is sold (on account) for $26,000, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July July Product Costs Direct materials Direct labor Overhead applied Job 120 Job 121 Job 122 $1,600 $6,800 $3,300 3,000 3,700 3,000 Total $11,700 9,700 1. Prepare journal entries for the following in July a. Direct materials used in production b. Direct labor used in production c. Overhead applied d. The sale of Job 120 e. Cost of goods sold for Job 120. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. Assume there are no jobs in Finished Goods Inventory as of June 30.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.) Work in Process Finished Goods Job Exercise 15-15 Factory overhead computed, applied, and adjusted LO P3, P4 In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead costs, $320,000, and direct materials costs, $100,000. At year-end 2017, the company's records show that actual overhead costs for the year are $1,640,500. Actual direct material cost had been assigned to jobs as follows Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory Total actual direct materials cost $370.000 84.000 56,000 5510,000 1. Determine the predetermined overhead rate for 2017 283. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Reg4 Determine the predetermined overhead rate for 2017, Overhead Rate Choose Denominator Choose Numerator: Overhead Rate Overhead rate Reg 2 and 3 > Problem 15-2A Source documents, journal entries, overhead, and financial reports LO P1, P2, P3, P4 The following information applies to the questions displayed below) Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll Factory Payroll Payable) has not been recorded. 46,000 Recounts receivable Raw materials inventory Work in process inventory Tinished goods inventory Trepaldent Mec a vable Notes payable Common stock Retained Barnings Coat of goods sold Factory overhead Operating expenses Totale 116.000 30.000 53,000 $361,000 $361,00 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. Materials requisition 21-0101 Materials requisition 21-1011 Materials requisition 21-012 Labor Line ticket 6052 Labor time tokat 6053 Labor Dicket 6056 6.700 direct materials to Job 402 $ 7.600 direct materials to Jab 404 $2.400 indirect materials $3.000 direct labor to Job 402 $16.000 direct labor to Job 404 $ 1.000 indirect labor