At the end of June, the job cost sheets of Racing Wheels, Inc., shows the following total costs accumulated on three custom jobs:Job 102 Job 103 Job 104Direct Materials $15,000 $33,000 $27,000Direct Labor 8,000 14,200 21,000Overhead 4,000 7,100 10,500Job 102 began 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 began in June. One applies overhead cost 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:What is the cost of the raw materials requisitioned in June for each of the three jobs? How much direct labor cost is incurred during June for each of the three jobs? What predetermined overhead rate is used during June? How much total cost is transferred to finished goods during June?

Question

Francisco Cantu

Business

5 May, 16:45

At the end of June, the job cost sheets of Racing Wheels, Inc., shows the following total costs accumulated on three custom jobs:Job 102 Job 103 Job 104Direct Materials $15,000 $33,000 $27,000Direct Labor 8,000 14,200 21,000Overhead 4,000 7,100 10,500Job 102 began 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 began in June. One applies overhead cost 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:What is the cost of the raw materials requisitioned in June for each of the three jobs? How much direct labor cost is incurred during June for each of the three jobs? What predetermined overhead rate is used during June? How much total cost is transferred to finished goods during June?

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Answers (1)

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Gabrielle Combs · Answer 1

Instructions are listed below

Explanation:

Giving the following information:

Job 102 began production in May:

Direct materials $6,000

Direct labor $1,800

Overhead $900.

June:

Job 102

Direct Materials $15,000 - 6000 = 9,000

Direct Labor 8,000

Overhead 4,000

Job 103

Direct Materials $33,000

Direct Labor 14,200

Overhead 7,100

Job 104

Direct Materials $27,000

Direct Labor 21,000

Overhead 10,500

One applies overhead costs 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.

A) Direct material requisioned=

Job 102 = 9,000

Job 103 = 33,000

Job 104 = 27,000

B) Direct labor:

Job 102 = 8,000

Job 103 = 14,200

Job 104 = 21,000

C) Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

Estimated manufacturing overhead rate = (4000 + 7100 + 10500) / (8000 + 14200 + 21000) = 0.5 per direct labor hour.

D) Total cost = Job 102 + Job 103

TC = $81,300