Question

The computer workstation furniture manufacturing that Santana Rey started in January 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. Job 602 Job 603 Job 604 Direct materials $ 1,500 $ 3,300 $ 2,700 Direct labor 800 1,420 2,100 Overhead 400 710 1,050 Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $180; and overhead, $90. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months.) Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total

Answer 1

Answer:

June Costs of the raw materials used  for each of the three jobs and in total.

                                  Job 602             Job 603        Job 604        Total

Direct materials            $ 900            $ 3,300        $ 2,700           6900

Explanation:

Business Solutions

                                          Job 602        Job 603        Job 604

Direct materials                 $ 1,500          $ 3,300        $ 2,700

Direct labor                           800              1,420              2,100

Overhead                              400                710                1,050

Job 602   May:  Costs

Direct Materials, $600;

Direct Labor, $180;

Overhead, $90

June Costs of the raw materials used  for each of the three jobs and in total.

                                  Job 602             Job 603        Job 604        Total

Direct materials            $ 900            $ 3,300        $ 2,700           6900

Job 602 total costs are $ 1500 and raw materials costs in May are $ 600. The remaining $ 900 is consumed in June.

Raw materials Job 603 and 604 are consumed in June in full amount