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          Job 103     Job 104 

Direct materials         $ 44,000     $ 54,000       $ 53,000 

Direct labor               16,000           30,000          41,000 

Overhead applied       5,280           9,900            13,530 

Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $11,000; direct labor, $3,400; and overhead, $1,122. 

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 following questions. (Assume this company’s predetermined overhead rate did not change across these months.) 

1&2. Complete the table below to calculate the cost of the raw materials.

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?

Answer rating: 100% (QA)

Predetermined overhead rate Overhead applied Direct labor Job 102 Predetermined overhead rate 5... View the full answer