Acc225 Fundamental Accounting Principles: Serial Problem 19 (SP19) Success Systems and Adriana Lopez

Acc225 Fundamental Accounting Principles

Serial Problem 19 (SP19)
The computer workstation furniture manufacturing that Adriana Lopez started January 2009, is progressing well. As of the end of June, Success System' job Cost sheets show these total costs accumulated on three furniture jobs.
Job 6.02 Job 6.03 Job 6.04
Direct materials 3,000 6,600 5,400
Direct labor 1,600 2,840 4,200
Overhead 800 1,420 2,100
Job 6.02 was started in production in May, and these costs were assigned to it in May: direct materials, $1,200; direct labor, $360; and overhead, $180. Jobs 6.03 and 6.04 were started in June. Overhead cost is applied with a predetermined rate bases on direct labor costs. Jobs 6.02 and 6.03 are finished in June, and Job 6.04 is expected to be finished in July. No raw materials are used indirectly in June.

Required (Questions)
1. What is the cost of the raw materials used in June for each of the three jobs and in total? 2. How much total direct labor cost is incurred in June?
3. What predetermined overhead rate is used in June?
4. How much cost is transferred to finished goods inventory in June?
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