At the End of June, Job Cost Sheets for Kennedy

question 27

Essay

At the end of June, job cost sheets for Kennedy Manufacturing show the following total costs accumulated on three custom jobs:


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 total cost of direct materials requisitioned in June for the three jobs?

b. What is the total direct labor cost incurred during June for 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:

Example

An example is a specific case or instance used to illustrate or explain a rule, concept, or situation, helping to clarify or exemplify a particular point.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

System Contains

Referring to the components, elements, or processes that are included within a defined system.

Average Number

A measure of central tendency calculated by summing all numbers in a set and then dividing by the count of those numbers.