Required information Problem 2-1A (Static) Computing job costs and overhead rate; assigning costs to inventory LO C1, P3
Posted: Mon Mar 21, 2022 4:19 pm
- Required Information Problem 2 1a Static Computing Job Costs And Overhead Rate Assigning Costs To Inventory Lo C1 P3 1 (128.2 KiB) Viewed 43 times
used in June?
3. What is the predetermined overhead
rate?
4. What is the total cost transferred to
Finished Goods Inventory in June?
Required information Problem 2-1A (Static) Computing job costs and overhead rate; assigning costs to inventory LO C1, P3 [The following information applies to the questions displayed below.] At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. At June 30 Direct materials Direct labor Overhead applied Job 5 $ 15,000 8,000 4,000 Job 6 $ 33,000 14,200 7,100 Job 7 $ 27,000 21,000 10,500 Additional Information a. Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $6,000; direct labor, $1,800; and applied overhead, $900. Job 5 was finished in June. b. Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July. c. Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months.