Exercise 19-2: Analysis of cost flows L.O. C2, P1, P2, P3
As of the end of June, the job cost sheets at Tracer Wheels, Inc., show the following total costs accumulated on
three custom jobs.
Job 102 was started in production in May and the following costs were assigned to it in May: direct materials,
$13,000; direct labor, $3,000; and overhead, $2,200. 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.)