1. An asset's book value is $18,000 on June 30, Year 6.

The asset is being depreciated at an

annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31,
Year 7 for $15,000, the company should record:

2. The Lake Company purchassd a machine for $95,000 on January 2. The machine was estimated to
have a $3,000 salvage value and a 4 year life. The machine was depreciated using the straigh-line
method. During the third year, it was obvious that the machine's total useful life would be 6 years rather
than 4, and the salvage at the end of the 6th year would be $1,500. Determine the depreciation expens
for the machine for the 6 years of its life.
Year 1:
Year 2:
Year 3:
Year 4:
Year 5:
Year 6:

3. At the end of June, the job cost sheets for Monson Manufacturing show the following total costs accumulated on
three custom jobs.
Job 203 Job 204 Job 205
Direct materials $32,000 $47,000 $43,000
Direct labor 18,000 22,000 25,000
Overhead 26,100 31,900 36,250
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?