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This situation happened in my last game: I shot some Eldar Rangers into a GK Strike squad and scored 3 Precision Shots, then two of them wounded. My chosen target died from the first save and my opponent told me the rest of the wounds are lost. I looked through the Precision Shot rule on pg. 63 of the BRB, and there's nothing there on this. So what is it? Are the other wounds lost if the target dies, or do they pass on to the rest of the squad?

Thanks for the replies.

Wounds are allocated and resolved one at a time, and Precision Shots are no different in this respect. If the first Precision Shot kills your chosen target, you get to pick a different target for the next one!

That makes sense, but can you point me to find the rules regarding this? Just so I can show it to my opponent next time. Thanks!

Page 15 (16 under fast rolling precise that sometimes you may avoid allocating wounds one at a time ) and 25 for close combat.
Precision shots/strikes just allow you to allocate that wound to someone else than the closest model.