Connect Ch.2 - Ch 2 Question #1 of 8 1. As of the end of...

Ch 2
Question #1 (of 8)
1.
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 $ 15,000 $ 33,000 $ 27,000
Direct labor 8,000 14,200 21,000
Overhead 4,000 7,100 10,500
Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $6,000; direct
labor, $1,800; and overhead, $900. Jobs 103 and 104 are started in June. Overhead cost is applied with a predetermined rate
based on direct labor cost. Jobs 102 and 103 are finished in June, and Job 104 is expected to be finished in July. No raw materials
are 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 requisitioned and direct labor cost incurred during June
for each of the three jobs.
3. What predetermined overhead rate is used for Job 102?
4. How much total cost is transferred to finished goods during June?

Ch 2
Question #2 (of 8)
2.
The following information is available for Lock-Safe Company, which produces special-order security products and uses a
job order cost accounting system.
April 30
May 31
Inventories
Raw materials $ 43,000 $ 52,000
Goods in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead
Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Predetermined overhead rate based on direct labor cost 70%
Compute the following amounts for the month of May using T-accounts.