Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.).

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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, 6,000; direct labor, 1,800; and overhead, 900.

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.

Using this information, answer the following questions.

Assume this companys predetermined overhead rate did not change across these months).

Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs.

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

The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

The company incurred the following costs during 2013: direct materials costs, 650,000; direct labor costs, 3,000,000; and factory overhead costs applied, 1,800,000.

Determine the companys predetermined overhead rate for year 2013.

Assuming that the companys 71,000 ending Goods in Process Inventory account for year 2013 had 20,000 of direct labor costs, determine the inventorys direct materials costs.

Assuming that the companys 490,000 ending Finished Goods Inventory account for year 2013 had 250,000 of direct materials costs, determine the inventorys direct labor costs and its overhead costs.

Deschamps Companys ending Goods in Process Inventory account consists of 5,000 units of partially completed product, and its Finished Goods Inventory account consists of 12,000 units of product.

The factory manager determines that Goods in Process Inventory includes direct materials cost of 10 per unit and direct labor cost of 7 per unit.

Finished goods are estimated to have 12 of direct materials cost per unit and 9 of direct labor cost per unit.

The company allocates factory overhead to its goods in process and finished goods inventories based on direct labor cost.

During the period, the company incurred these costs: direct materials, 535,000; direct labor, 290,000; and factory overhead applied, 362,500.

Compute cost of goods sold for the year (assume no beginning inventories and no underapplied or overapplied overhead).

Raw materials purchases in April are 500,000, and factory payroll cost in April is 363,000.

Overhead costs incurred in April are: indirect materials, 50,000; indirect labor, 23,000; factory rent, 32,000; factory utilities, 19,000; and factory equipment depreciation, 51,000.

Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).

Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor.

Factory rent and utilities are paid in cash.).

Managerial Accounting Chapter 2 Answers