As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jo
bs. Job 102 Job 103 Job 104 Direct materials $ 37,000 $ 48,000 $ 57,000 Direct labor 20,000 28,700 43,000 Overhead 8,200 11,767 17,630 Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $8,000; direct labor, $2,900; and overhead, $1,189. 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 companyExpert Answer
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Answer:
This question is incomplete, here's the complete question:
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 following costs were assigned to it in May: direct materials, $8,000; direct labor, $2,900; and overhead, $1,189. 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).
Explanation:
The process of Job costing is implemented in those industries where diverse jobs are undertaken. Each and every job has some unique and distinctive features that differentiate it from other. The total cost incurred for completion of Job is recorded in a sheet identified as the Job cost sheet. And after completion it is reassigned to finished stock.
Looking at the question, three jobs are considered. Job 102 was started in May and was completed by June. Other jobs begin in June and will be finished in July. The figures are to be calculated up to June.
The answer of point 1 and 2have been explained in the attached image:
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