At the End of June, the Job Cost Sheets for Kennedy

question 168

Essay

At the end of June, the job cost sheets for Kennedy Manufacturing show the following total costs accumulated on three custom jobs.
$$\begin{array} { | l | l | l | l | } \hline & \text { Job 203 } & \text { Job 204 } & \text { Job 205 } \\\hline \text { Direct materials } & \$ 32,000 & \$ 47,000 & \$ 43,000 \\\hline \text { Direct labor } & 18,000 & 22,000 & 25,000 \\ \hline \text { Overhead } & 26,100 & 31,900 & 36,250 \\\hline\end{array}$$ Job 203 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $6,000; and overhead $8,700. Jobs 204 and 205 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 203 and 204 are finished in June, and Job 205 will be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions assuming the company's predetermined overhead rate did not change.
a. What is the cost of the raw materials requisitioned in June for each of the three jobs?
b. How much direct labor cost is incurred during June for each of the three jobs?
c. What predetermined overhead rate is used during June?
d. How much total cost is transferred to finished goods during June?

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Definitions:

Saving

The act of setting aside a portion of current income for future use, which could involve depositing money into bank accounts or investing in financial products.

Investment

Assigning funds with the anticipation of creating income or achieving financial gain.

Loanable Funds

The total funds available from savers for borrowing in the financial markets, used for investments, purchasing goods, or other purposes.

Private Investment

Spending by businesses or individuals on capital goods, such as factories, machinery, and homes, which is used to produce goods or services.