Question
In: Accounting
At the end of June, the job cost sheets for Monson Manufacturing show the following total...
At the end of June, the job cost sheets for Monson Manufacturing show the following total costs accumulated on three custom jobs.
| Job 203 | Job 204 | Job 205 | |
| Direct materials | $32,000 | $47,000 | $43,000 |
| Direct labor | 18,000 | 22,000 | 25,000 |
| Overhead | 26,100 | 31,900 | 36,250 |
Job 203 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $6,000; and overhead $8,700. Jobs 204 and 205 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 203 and 204 are finished in June, and Job 205 will be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions assuming the company's predetermined overhead rate did not change.
a. What is the cost of the raw materials requisitioned in June for
each of the three jobs? Blank 1
b. How much direct labor cost is incurred during June for each of
the three jobs? Blank 2
c. What predetermined overhead rate is used during June? Blank
3
d. How much total cost is transferred to finished goods during
June? Blank 4
Solutions
Expert Solution
Solution a and b:
| Direct Materials | |||
| Job | May | June | Total |
| 203 | $12,000 | $20,000 | $32,000 |
| 204 | $47,000 | $47,000 | |
| 205 | $43,000 | $43,000 | |
| Total | $12,000 | $1,10,000 | $1,22,000 |
| Direct Labor | |||
| Job | May | June | Total |
| 203 | $6,000 | $12,000 | $18,000 |
| 204 | $22,000 | $22,000 | |
| 205 | $25,000 | $25,000 | |
| Total | $6,000 | $59,000 | $65,000 |
Solution c:
| Overhead Rate | ||||
| Choose Numerator | / | Choose Denominator | = | Overhead Rate |
| Job 204 | ||||
| Overhead Applied | / | Direct Labor Cost | = | Overhead Rate |
| $26,100 | / | $18,000 | = | 145% |
| Job 204 | ||||
| Overhead Applied | / | Direct Labor Cost | = | Overhead Rate |
| $31,900 | / | $22,000 | = | 145% |
| Job 1205 | ||||
| Overhead Applied | / | Direct Labor Cost | = | Overhead Rate |
| $36,250 | / | $25,000 | = | 145% |
Solution d:
| Job | Direct Material | Direct Labor | Applied Overhead | Total Cost | Cost Transferred to finished goods |
| 203 | $32,000 | $18,000 | $26,100 | $76,100 | $76,100 |
| 204 | $47,000 | $22,000 | $31,900 | $1,00,900 | $1,00,900 |
| 205 | $43,000 | $25,000 | $36,250 | $1,04,250 | $0 |
| Total | $1,22,000 | $65,000 | $94,250 | $2,81,250 | $1,77,000 |
ekkarill92 answered 1 year agoRelated Solutions
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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
$
44,000
$
54,000
$
49,000
Direct labor
16,000
29,100
44,000
Overhead applied
5,440
9,894
14,960
Job 102 was started in production in May, and the following costs
were assigned to it in May: direct materials, $10,000; direct
labor, $3,300; and overhead, $1,122. Jobs 103 and 104 were...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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
$
41,000
$
51,000
$
65,000
Direct
labor
12,000
29,700
39,000
Overhead
applied
5,400
13,365
17,550
Job 102 was started in production in May and the following costs
were assigned to it in May: direct materials, $13,000; direct
labor, $3,500; and overhead, $1,575. Jobs 103 and 104 were...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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 $ 43,000 $ 73,000 $
53,000 Direct labor 11,000 28,600 43,000 Overhead applied 4,400
11,440 17,200 Job 102 was started in production in May and the
following costs were assigned to it in May: direct materials,
$13,000; direct labor, $4,000; and overhead, $1,600. Jobs 103 and
104 were...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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
$
21,000
$
55,000
$
59,000
Direct labor
12,000
29,700
44,000
Overhead applied
4,560
11,286
16,720
Job 102 was started in production in May, and the following costs
were assigned to it in May: direct materials, $8,000; direct labor,
$3,300; and overhead, $1,254. Jobs 103 and 104 were...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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
$
41,000
$
56,000
$
48,000
Direct
labor
15,000
28,500
45,000
Overhead
applied
6,300
11,970
18,900
Job 102 was started in production in May, and the following costs
were assigned to it in May: direct materials, $9,000; direct labor,
$3,600; and overhead, $1,512. Jobs 103 and 104 were...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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
$
41,000
$
56,000
$
48,000
Direct
labor
15,000
28,500
45,000
Overhead
applied
6,300
11,970
18,900
Job 102 was started in
production in May, and the following costs were assigned to it in
May: direct materials, $9,000; direct labor, $3,600; and overhead,
$1,512. Jobs 103 and 104 were...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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
$ 27,000
$
56,000
$
51,000
Direct labor
17,000
26,700
46,000
Overhead
6,800
10,680
18,400
Job 102 was started in production in May and the following costs
were assigned to it in May: direct materials, $12,000; direct
labor, $3,200; and overhead, $1,280. Jobs 103 and 104 are started...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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 $ 17,000 $ 64,000 $
57,000 Direct labor 13,000 29,500 45,000 Overhead 6,240 14,160
21,600 Job 102 was started in production in May and the following
costs were assigned to it in May: direct materials, $10,000; direct
labor, $3,100; and overhead, $1,488. Jobs 103 and 104 are started...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
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 $ 44,000 $ 54,000 $
53,000 Direct labor 16,000 30,000 41,000 Overhead applied 5,280
9,900 13,530 Job 102 was started in production in May, and the
following costs were assigned to it in May: direct materials,
$11,000; direct labor, $3,400; and overhead, $1,122. Jobs 103 and
104 were...
Exercise 15-3 Analysis of cost flows LO C2 As of the end of June, the job...
Exercise 15-3 Analysis 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.
Job 102
Job 103
Job 104
Direct materials
$
26,000
$
68,000
$
46,000
Direct labor
13,000
28,200
40,000
Overhead applied
5,330
11,562
16,400
Job 102 was started in production in May and the following costs
were assigned to it in May: direct materials, $9,000; direct labor,
$2,800;...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
ADVERTISEMENT