The computer workstation furniture manufacturing that Santana Rey started 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. Direct materials Direct labor Overhead applied Job 602 $ 1,400 Required 1 800 320 Job 602 was started in May, and the following costs were assigned to it in May: direct materials, $700; direct labor, $250; and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate as a percent of direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. The company's predetermined overhead rate did not change over these months. Required: 1. What is the cost of direct materials used in June for each of the three jobs and in total? 2. What is the cost of direct labor used in June for each of the three jobs and in total? 3. What predetermined overhead rate is used in June? 4. How much cost is transferred to finished goods inventory in June? May costs June costs Total Job 603 $ 3,700 1,580 632 Complete this question by entering your answers in the tabs below. Job 602 Required 2 Required 3 Job 604 $ 3,100 1,800 720 What is the cost of direct materials used in June for each of the three jobs and in total? Job 603 Required 4 Job 604 < Required 1 Total Required 2 >
The computer workstation furniture manufacturing that Santana Rey started 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. Direct materials Direct labor Overhead applied Job 602 $ 1,400 Required 1 800 320 Job 602 was started in May, and the following costs were assigned to it in May: direct materials, $700; direct labor, $250; and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate as a percent of direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. The company's predetermined overhead rate did not change over these months. Required: 1. What is the cost of direct materials used in June for each of the three jobs and in total? 2. What is the cost of direct labor used in June for each of the three jobs and in total? 3. What predetermined overhead rate is used in June? 4. How much cost is transferred to finished goods inventory in June? May costs June costs Total Job 603 $ 3,700 1,580 632 Complete this question by entering your answers in the tabs below. Job 602 Required 2 Required 3 Job 604 $ 3,100 1,800 720 What is the cost of direct materials used in June for each of the three jobs and in total? Job 603 Required 4 Job 604 < Required 1 Total Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
What is the cost of direct labor used in June for each of the three jobs and in total?
May costs
June costs
Total
Required 3 Required 4
Job 602
Job 603
Job 604
< Required 1
Total
Required 3 >
Transcribed Image Text:The computer workstation furniture manufacturing that Santana Rey started 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.
Direct materials
Direct labor
Overhead applied
Job 602
$ 1,400
800
320
Job 602 was started in May, and the following costs were assigned to it in May: direct materials, $700; direct labor, $250;
and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate as a
percent of direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. The
company's predetermined overhead rate did not change over these months.
Required 1
Required:
1. What is the cost of direct materials used in June for each of the three jobs and in total?
2. What is the cost of direct labor used in June for each of the three jobs and in total?
3. What predetermined overhead rate is used in June?
4. How much cost is transferred to finished goods inventory in June?
Job 603
$ 3,700
1,580
632
Complete this question by entering your answers in the tabs below.
May costs
June costs
Total
Job 604
$ 3,100
1,800
720
Required 2 Required 3
Job 602
What is the cost of direct materials used in June for each of the three jobs and in total?
Job 603
Required 4
Job 604
< Required 1
Total
Required 2 >
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