The computer workstation furniture manufacturing that Santana Rey started in Jan

Question

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions’ job cost sheets show the following total costs accumulated on three furniture jobs.

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions’ job cost sheets show the following total costs accumulated on three furniture jobs.

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well As of the end of June, Business Solutions' job cost sheets show the following total costs accumulated on three furniture jobs Direct materials Direct labor Overhead Job 6.02 Job 6.03 Job 6.04 $1,700 $3,100 $2,800 1,700 850 900 450 1,560 780 Job 6.02 was started in production in May, and these costs were assigned to it in May: direct materials $600; direct labor, $240; and overhead, $120. Jobs 6.03 and 6.04 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 6.02 and 6.03 are finished in June, and Job 6.04 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did not change over these months). Required 1. What is the cost of the raw materials used in June for each of the three jobs and in total? (Omit the "$" sign in your response.) Job 6.02 $ Job 6.03 $ Job 6.04 $ Total 2. How much total direct labor cost is incurred in June? (Omit the "$" sign in your response.) Total direct labor 3. What predetermined overhead rate is used in June? (Omit the "%" sign in your response.) Predetermined overhead rate 4. How much cost is transferred to finished goods inventory in June? (Omit the "$" sign in your response Total transferred cost

Explanation / Answer

Ans 1 Direct Material used in June Job 6.02 (1700-600) 1100 Job 6.03 3100 Job 6.04 2800 Ans 2 Direct Labour used in June 900-240+1560+1700 3920 Ans 3 Predetermined overhead rate 50% of direct Labor cost For example Job 6.03 Direct Labor Cost 900 Overhead is 50% 450 Ans 4 Cost Transferred to Finished Goods Inventory Total Transferred Cost Job 6.02 1700+900+450 3050 Job 6.03 3100+1560+780 5440 Total Transferred Cost $8490

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