At the end of June, the job cost sheets of Racing Wheels, Inc.,shows the following total costs accumulated on three customjobs:
Job 102 Job 103 Job 104 Direct Materials $15,000 $33,000 $27,000 Direct Labor 8,000 14,200 21,000 Overhead 4,000 7,100 10,500
Job 102 began production in May, and the following costs wereassigned to it in May: direct materials $6,000; direct labor$1,800; and overhead $900. Jobs 103 and 104 began in June. Oneapplies overhead cost with a predetermined rate based on directlabor cost. Jobs 102 and 103 are finished in June, and Job 104 isexpected to be finished in July. No raw materials are usedindirectly in June. Using this information, answer the followingquestions:
What is the cost of the raw materials requisitioned in June foreach of the three jobs?
How much direct labor cost is incurred during June for each ofthe three jobs?
What predetermined overhead rate is used during June?
How much total cost is transferred to finished goods duringJune?
At the end of June, the job cost sheets of Racing Wheels, Inc.,shows the following total costs accumulated on three customjobs:
| Job 102 | Job 103 | Job 104 | |
| Direct Materials | $15,000 | $33,000 | $27,000 |
| Direct Labor | 8,000 | 14,200 | 21,000 |
| Overhead | 4,000 | 7,100 | 10,500 |
Job 102 began production in May, and the following costs wereassigned to it in May: direct materials $6,000; direct labor$1,800; and overhead $900. Jobs 103 and 104 began in June. Oneapplies overhead cost with a predetermined rate based on directlabor cost. Jobs 102 and 103 are finished in June, and Job 104 isexpected to be finished in July. No raw materials are usedindirectly in June. Using this information, answer the followingquestions:
What is the cost of the raw materials requisitioned in June foreach of the three jobs?
How much direct labor cost is incurred during June for each ofthe three jobs?
What predetermined overhead rate is used during June?
How much total cost is transferred to finished goods duringJune?
Related questions
Prepare Job-Order Cost Sheets, Predetermined OverheadRate, Ending Balance of WIP, Finished Goods, and COGS
At the beginning of June, Rhone Company had two jobs in process,Job 44 and Job 45, with the following accumulated costinformation:
| Job 44 | Job 45 | |
| Direct materials | $5,100 | $1,500 |
| Direct labor | 1,200 | 3,000 |
| Applied overhead | 780 | 1,950 |
| Balance, June 1 | $7,080 | $6,450 |
During June, two more jobs (46 and 47) were started. Thefollowing direct materials and direct labor costs were added to thefour jobs during the month of June:
| Job 44 | Job 45 | Job 46 | Job 47 | |
| Direct materials | $2,500 | $7,110 | $1,800 | $1,700 |
| Direct labor | 800 | 6,400 | 900 | 560 |
At the end of June, Jobs 44, 45, and 47 were completed. Only Job45 was sold. On June 1, the balance in Finished Goods was zero.
| 1. | Calculate the overhead ratebased on direct labor cost. Round to three decimalplaces. | |||||||||||
| 2. | Prepare a brief job-order costsheet for the four jobs. Show the balance as of June 1 as well asdirect materials and direct labor added in June. Apply overhead tothe four jobs for the month of June, and show the endingbalances. | |||||||||||
| 3. | Calculate the ending balancesof Work in Process and Finished Goods as of June 30. | |||||||||||
| 4. | Calculate the Cost of Goods Sold for June. Refer to the list below for the exact wording of text itemswithin your job-order cost sheets.
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The Runtechnology Corporation, began operations on February 1.It employs a job-order costing system. Overhead is charged at anormal rate of $3.80 per direct labor hour. The actual operationsfor the month of February are summarized as follows:
| a. | Purchases of raw material, 35,000 pieces @ $1.50/piece. |
| b. | Material and labor costs charged to production: |
| Units | Material | Direct | Direct |
101 | 10,000 | $6,000 | $16,000 | 1,300 |
102 | 8,800 | 3,200 | 15,800 | 1,050 |
103 | 16,000 | 7,500 | 19,000 | 1,260 |
104 | 8,000 | 3,000 | 14,800 | 980 |
105 | 20,000 | 9,000 | 13,600 | 850 |
| c. | Actual overhead costs incurred: |
| Variable | $7,500 |
| Fixed | 14,000 |
| d. | Completed jobs: 101, 102, 103, and 104 |
| e. | Sales-$105,000. All units produced on Jobs 101 and 103 weresold. |
Required: Compute the following dollar ($)balances on February 29:
| a. | Material inventory |
| b. | Work in process inventory |
| c. | Finished goods inventory |
| d. | Cost of goods sold (before closing OH) |
| e. | Under- or overapplied overhead |
