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SP19

Price: $2.50


The computer workstation furniture manufacturing that Santana Rey started in January is
progressing well. As of the end of June, Business Solutions’ job cost sheets show the following total
costs accumulated on three furniture jobs.


 Job 6.02   Job. 6.03   Job 6.04 
Direct materials  1,500  3,300  2,700
Direct labor  800  1,420  2,100
Overhead  400  710  1,050

Job 6.02 was started in production in May, and these costs were assigned to it in May: direct materials,
$600; direct labor, $180; and overhead, $90. Jobs 6.03 and 6.04 were started in June. Overhead cost is
applied with a predetermined rate based 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. (Assume this company’s predetermined overhead rate did not change over these months).

Required
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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