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 | $1,77,000 |
ekkarill92 answered 1 year agoRelated Solutions
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Job 104
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$
41,000
$
56,000
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15,000
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Overhead
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