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's job cost sheets show the following total costs accumulated on three furniture jobs Job 602 Direct materials $1,600 700 280 Job 603 $3,200 1,360 544 Job 604 $2,900 2,100 840 Direct labor Overhead Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $800; direct labor, $250; and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 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? 2. How much total direct labor cost is incurred in June? 3. What predetermined overhead rate is used in June? 4. How much cost is transferred to finished goods inventory in June?

Explanation / Answer

As help is required in question 1 so answer to question 1 is as follows: Calculation of cost of raw material: Job 602= Total direct material- direct materia of may= 1600-800= $800 As job 603 and 604 started in june only so cost of material is Job 603= $3200 Job 604= $2900 Total cost of raw material= 800+3200+2900= $6900

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