Question

Check my JUIUM 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 The following information applies to the questions displayed below) Widmer Watercraft's predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company's production activities during May 2017 follows. a. Purchased raw materials on credit, $220,000 b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used $ 50,000 32,500 19,600 23,200 7,200 132,500 20.000 $152,500 c. Paid $15.500 cash to a computer consultant to reprogram factory equipment d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12.200 10.700 37.500 39.000 3.600 103000 25,000 $128.000 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $530,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance) Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69.000 38.500 12.000 36.000 I. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Answer 1

$0 Report of Job Costs Work in Process Inventory Beginning balance Job 137 $64,600 Job 140 $18,000 Balance $82,600 Finished Goods Inventory Beginning balance $0 Job 139 $140,200 Balance $140,200 $0 Cost of Goods Sold Beginning balance Job 136 $86,600 Job 138 $132,100 Balance $218,700

Schedules: Direct Materials Direct Labors Factory Overhead Total costs allocated to the jobs Status at the end Job 136 $50,000 $12,200 $24,400 $86,600 Sold Job 137 $32,500 $10,700 $21,400 $64,600 WIP Job 138 $19,600 $37,500 $75,000 $132,100 Sold Job 139 $23,200 $39,000 $78,000 $140,200 Unsold Job 140 $7,200 $3,600 $7,200 $18,000 WIP Totals $132,500 $103,000 $206,000 [Ref: NOTE-1] $441,500 Total Costs accounted for Finished Goods Total Costs accounted for Cost of Goods Sold Total Costs accounted for Work in Process Total Costs accounted for $140,200 (Cost of Job 139] $218,700 [Cost of Job 136 & 138] $82,600 (Cost of Job 137 & 140] $441,500

Job 136 137 138 139 140 Materials $50,000 $32,500 $19,600 $23,200 $7,200 $132,500 $20,000 $152,500 Labor $12,200 $10,700 $37,500 $39,000 $3,600 $103,000 $25,000 $128,000 Total $62,200 $43,200 $57,100 $62,200 $10,800 $235,500 $45,000 $280,500 [Used for WIP] (Used for FOH) Gen. factory Job 136 138 Direct Labor $12,200 $37,500 $39,000 $88,700 Rate 200% 200% 200% 200% Applied FOH $24,400 ($12200 x $200%] $75,000 $37500 x $200%] $78,000 [$39000 x $200%] $177,400 --> FOH applied to Job 136, 138 & 139 139 Job 137 140 Direct Labor $10,700 $3,600 $14,300 Rate 200% 200% 200% Applied FOH $21,400 ($10700 x $200%] $7,200 [$3600 x $200%] $28,600 --> FOH applied to Job 137 & 140