Question

Required information [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. $ 48,000 Job 136 Job 137 32,000 19,200 22,400 6,400 128,000 19,500 Job 138 Job 139 Job 140 Total direct materials Indirect materials $147,500 Total materials used c. Paid $15,000 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. $ 12,000 Job 136 Job 137 10,500 37,500 39,000 3,000 102,000 Job 138 Job 139 Job 140 Total direct labor Indirect labor 24,000 Total $126,000 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 $525,00. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory incurancel

Answer 1

Answer :-

Job cost sheet for each job worked on during the month -

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials (Materials requisition cost given in point b.)	48,000	32,000	19,200	22,400	6,400
Labor ( Labor wages given in point d.)	12,000	10,500	37,500	39,000	3,000
Overhead ( 200% of Labor)	24,000	21,000	75,000	78,000	6,000
Total cost (Materials + Labor + Overhead)	84,000	63,500	131,700	139,400	15,400

Overhead = 200% of Labor because as given that predetermined Overhead rate is 200 % of Direct Labor