Question

[The following information applies to the questions displayed below) Widmer Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $200,000. 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 $ 49,500 32,500 19,600 23,000 6,800 131,400 21,500 $152,900 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 10,800 37,500 39,400 3,800 103,700 26.ece $129,700

Answer 1

Job cost will be prepared using the information provided. There is data of direct materials used and labour cost.

Overheads for all the jobs will be applied at 200% of direct labour cost.

Job No.137 32,500 10,800 Job No.136 Materials 49,500 Labour 12,200 Overhead (200% of labour cost) 24,400 Total cost 86,100 Job No.138 19,600 37,500 Job No.139 23,000 39,400 Job No.140 6,800 3,800 21,600 64,900 75,000 132,100 78,800 141,200 7,600 18,200