Reference no: EM131536348

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                    Job 103                 Job 104

Direct materials . . . . . . . . . $30,000                    $66,000                 $54,000

Direct labor . . . . . . . . . . . . 16,000                       28,400                   42,000

Overhead . . . . . . . . . . . . . . 8,000                        14,200                   21,000

Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $3,600; and overhead, $1,800. 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. What is the cost of the raw materials requisitioned in June for each of the three jobs?

2. How much direct labor cost is incurred during June for each of the three jobs?

3. What predetermined overhead rate is used during June?

4. How much total cost is transferred to finished goods during June?