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, $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 $ 48,000 33.000 19,200 22,600 6,800 129,600 20,500 $150, 100 c. Paid $15,250 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 10.600 37,700 39,400 3,200 103, 100 24,500 $127,600 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 $545,000. 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 $68,500 37.500 12.000 35,500 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. Prepare journal entries to record the events and transactions a through i.

• 1Record raw material purchases on credit.

• 2

  Record the requisition of direct and indirect materials.

• 3

  Record payment to computer consultant to reprogram factory equipment.

• 4

  Record the entry for direct and indirect labor, paid in cash.

• 5

  Record the entry to apply overhead to jobs 136, 138 and 139.

• 6

  Record the transfer of completed jobs 136,138 and 139 to finished goods.

• 7

  Record the entry for sales on account for Jobs 136 and 138.

• 8

  Record the entry for the cost of sales of Jobs 136 and 138.

• 9

  Record other factory overhead (depreciation, insurance and property taxes).

• 10

  Record the entry to apply overhead to Jobs 137 and 140 (Work in Process).

Answer 1

Ansever Page No 0 . Towinal entries Applied overhead to Jobs 136,138 $ 139 @ work in process inventory = (19, 200 + 34,400 + 39,400) X 200% 89300X 2 :=¢ 178600 Transferred. Jobs 136,1389 139 to finished goods finished goods inventory = |(48000 + 19200 + 22600) + [12200 + 34400 + 394007 = 89800 + 89300 = $179100 Sold Jobo 136 & 138 on credit at total price $545000 la coof of goods sold = ( 48000 + 19200) + (12200 + 34700) + [(12200 + 34400) X 200%) = 64200 + 49900 +99800 = 5016900 Jobo 137 & 140 o work in process inventory = (10600+ 3200) x 200 % = 13800 X 2 3 $27600

SNO Particular Raus materials inventory Accounts payable work in process inventory Factory overheads Raw materials inventory Page.no @ : Debit I Credit $ 220,000 - $220,000 $129,600 - $ 20,500 $150,100 $15250 $15250 factory overheads 103100 $24500 $127600 - Cash work in process inventory factory overheads factory evages payable work in process inventory - factory overheads finished goods coventory work in process inventory $148600 $ 148600 $179100 - $179100 $5450001 - 4645000 Accounts receivable sales revenue . Cost of goods sold finished goods inventory $216900 $216900

. Isino Particular factory overheads Acrmilated ckpreciation - building tccumulated depreciation - Equipment Prepaid factory insurance Property fax payable Work in process inventory. factory overheads Page: No Debit . Credit $153500 $ 68,500 $37,500 $12000 $35,500 $ 27600 $27600 ty