Chapter 19, Problem 3E

Exercise 19-3
Analysis of cost flows
C2
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
Job 102 was started in production in May, and the Mowing costs were assigned to it in May: direct materials, $6,000; direct labor, $1,800; and overhead, $900. Jobs 103 and 104 were started in June, Overhead cost is applied with a predetermined rate based on 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 used indirectly in June. Using this information, answer the Mowing questions. (Assume this company's predetermined overhead rate did not change across these months.)
1. What was the cost of the raw materials requisitioned in June for each of the three jobs?
2. How much direct labor cost was incurred during June for each of the three jobs?
3. What predetermined overhead rate is used during June?
4. How much total cost is transferred to finished goods during June?
Check (4) $81,300