Direct materials $39,000$48,000 $60,000 Direct labor 19,00026,500 38,000 Overhea
ID: 2512148 • Letter: D
Question
Direct materials $39,000$48,000 $60,000 Direct labor 19,00026,500 38,000 Overhead applied9,120 12,720 18,240 Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $13,000: direct labor $3,300: and overhead, $1,584. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based or direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were use indirectly in June. Using this information, answer the following questions. (Assume this company's predetermine? overhead rate did not change across these months.) 1&2. Complete the table below to calculate the cost of the raw materials requistioned and direct labor cost incurred during June for each of the three jobs? 3. Using the accumulated costs of the jobs, what predetermined overhead rate is used? 4. How much total cost is transferred to finished goods during June? Complete this question by entering your answers in the tabs below Req 1 and 2 Reg 3 Reg 4 How much total cost is transferred to finished goods during June? Cost Transferred to DirectApplieTotal Cost Finished Goods Labor Overhead Job 102 103 104 Total Mat $ 39,000 $ 19,000 26,500 38,000 s 147,00083,500 48,000 60,000Explanation / Answer
1.
Direct Materials
Job
May
June
Total
102
$13,000
$26,000
$39,000
103
0
$48,000
$48,000
104
0
$60,000
$60,000
Total
$13,000
$74,001
$87,001
2.
Direct Labor
Job
May
June
Total
102
$3,300
$15,700
$19,000
103
0
$26,500
$26,500
104
0
$38,000
$38,000
Total
$3,300
$80,200
$83,500
3.
Overhead rate = Estimated total overhead cost/Estimated total direct labor
= ($ 9,120 + $ 12,720 + $ 18,240)/ ($ 19,000 + $ 26,500 + $ 38,000)
= $ 40,080/$ 83,500 = 0.48 or 48 %
4.
Job
Direct Material
Direct Labor
Applied Overhead
Total Cost
Cost Transferred to Finished Goods
102
$39,000
$19,000
$ 9,120
$67,120
$67,120
103
$48,000
$26,500
$ 12,720
$87,220
$87,220
104
$60,000
$38,000
$ 18,240
$116,240
0
Total
$147,000
$83,500
$ 40,080
$270,580
$154,340
Direct Materials
Job
May
June
Total
102
$13,000
$26,000
$39,000
103
0
$48,000
$48,000
104
0
$60,000
$60,000
Total
$13,000
$74,001
$87,001
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