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The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. Job 603 $3,300 1,420 Job 602 Job 604 Direct materials $1,500 $2,700 Direct labor 2,100 1,050 800 Overhead 400 710 Job 602 was started in production in May, and these costs were assigned to it in May. direct materials, $600; direct labor, $180; and overhead, $90. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did not change over these months.) Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total? 2. How much total direct labor cost is incurred in June? 3. What predetermined overhead rate is used in June? 4. How much cost is transferred to finished goods inventory in June? Required 1 Required 2 Required 3 Required 4 How much total direct labor cost is incurred in June? Total Job 602 Job 603 Job 604 May costs 180 C C 180 $ June costs 3,520 1,420 2,100 Total 1,420 2,100 3,520 Required 3 Required 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What predetermined overhead rate is used in June? Predetermined overhead rate Required 2 Required 4 Required 1 Required 2 Required 3 Required 4 How much cost is transferred to finished goods inventory in June? Total Cost Cost transferred to finished goods Raw Direct Overhead Costs of Job Materials Labor Applied Ending WIP 602 603 604 Total Required 3 Required 4
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