Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 15-3 Analyzing of cost flows LO C2 As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 15-3 Analyzing 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 $32,000 18,000 8,460 Job 103 $49,000 28,700 13,489 Job 104 $47,000 41,000 19,270 Job 102 was started in production in May, and the following costs were assigned to it in May, direct materials. $12,000, direct labor, $4,000, and overhead, $1.880. 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 Req3 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 102 104 Direct Labor Job May June Total Total Reg 1 and 2 Req3 > Req 1 and 2 Req 3 Req 4 Using the accumulated costs of the jobs, what predetermined overhead rate is used? Overhead Rate Choose Denominator: | = Overhead Rate Choose Numerator: Job 102 Overhead rate Job 103 I = Overhead rate Job 104 = Overhead rate 1 I Req 1 and 2 Req3 Req 4 How much total cost is transferred to finished goods during June? Job Direct Materials Direct Labor Appliedd Overhead Total Cost Cost Transferred to Finished Goods 102 $ $ 103 32,000 49,000 47,000 128,000 18,000 28,700 41,000 87,700 104 Total $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Accounting Business Reporting For Decision Making

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

6th Edition

978-0730363415, 0730363414

More Books

Students also viewed these Accounting questions

Question

5.3 Explain internal recruitment methods.

Answered: 1 week ago