At the end of June, the job cost sheets for Monson Manufacturing show the following total costs...

Free

70.2K

Verified Solution

Question

Accounting

At the end of June,the job cost sheets for Monson Manufacturing show the followingtotal costs accumulated on three custom jobs.

Job 203Job 204Job 205
Direct materials$32,000$47,000$43,000
Direct labor18,00022,00025,000
Overhead26,10031,90036,250

Job 203 was started inproduction in May and the following costs were assigned to it inMay: direct materials, $12,000; direct labor, $6,000; and overhead$8,700. Jobs 204 and 205 are started in June. Overhead cost isapplied with a predetermined rate based on direct labor cost. Jobs203 and 204 are finished in June, and Job 205 will be finished inJuly. No raw materials are used indirectly in June. Using thisinformation, answer the following questions assuming the company'spredetermined overhead rate did not change.


a. What is the cost of the raw materials requisitioned in June foreach of the three jobs? Blank 1
b. How much direct labor cost is incurred during June for each ofthe three jobs? Blank 2
c. What predetermined overhead rate is used during June? Blank3
d. How much total cost is transferred to finished goods duringJune? Blank 4

Answer & Explanation Solved by verified expert
4.2 Ratings (543 Votes)

Solution a and b:

Direct Materials
Job May June Total
203 $12,000 $20,000 $32,000
204 $47,000 $47,000
205 $43,000 $43,000
Total $12,000 $1,10,000 $1,22,000
Direct Labor
Job May June Total
203 $6,000 $12,000 $18,000
204 $22,000 $22,000
205 $25,000 $25,000
Total $6,000 $59,000 $65,000

Solution c:

Overhead Rate
Choose Numerator / Choose Denominator = Overhead Rate
Job 204
Overhead Applied / Direct Labor Cost = Overhead Rate
$26,100 / $18,000 = 145%
Job 204
Overhead Applied / Direct Labor Cost = Overhead Rate
$31,900 / $22,000 = 145%
Job 1205
Overhead Applied / Direct Labor Cost = Overhead Rate
$36,250 / $25,000 = 145%

Solution d:

Job Direct Material Direct Labor Applied Overhead Total Cost Cost Transferred to finished goods
203 $32,000 $18,000 $26,100 $76,100 $76,100
204 $47,000 $22,000 $31,900 $1,00,900 $1,00,900
205 $43,000 $25,000 $36,250 $1,04,250 $0
Total $1,22,000 $65,000 $94,250 $2,81,250 $1,77,000

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students