value: 3.00 points As of the end of June, the job cost sheets at Racing Wheels,
ID: 2419194 • Letter: V
Question
value: 3.00 points As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Job 102 Job 103 Job 104 Direct materials $35,000 $57,000 $54,000 15,000 27,500 41,000 Overhead applied 6,750 12,375 18,450 Direct labor Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $8,000, direct labor, $3,100; and overhead, $1,395. 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 company's predetermined overhead rate did not change across these months.) 182. 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: June Total 102 103 104 8,000 $ 27,000 S 57,000 54,000 138,000 $ 35,000 57,000 54,000 146,000 Total 8,000 $ Direct Labor 102 3,100$ 103 104 Total 11,900 $ 27,500 41,000 80,400 $ 15,000 27,500 41,000 83,500 3,100 $Explanation / Answer
3. Pre-Determined Overhead Rate Used During June For Job 102 Estimated Overhead Cost $ 6,750 (i) Estimated Labour Cost $ 15,000 (ii) Overhead Rate = (i) / (ii) = 45% 4. Cost Transferred to Finished Goods during June (All amounts in $) Job Direct Direct Applied Total Cost trfd Materials Labor Overhead Cost to FG 102 35000 15000 6750 56750 56750 103 57000 27500 12375 96875 96875 104 54000 41000 18450 113450 0 This is trfd to WIP since the job was completed in July 146000 83500 37575 267075 153625
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