Question

all these parts are connected

Problem 19-3A 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, $240,000. 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 5e, Bee 33, 5ee 19,800 23,200 7.000 133,500 21. See $ 155.ee c. Pald $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. 205 136 12,000 Job 135 Job lite

Answer 1

1)

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials	$50000	$33500	$19800	$23200	$7000
Labor	12000	10600	37700	39400	3200
Overhead	(12000*200%)= 24000	(10600*200%)= 21200	(37700*200%)= 75400	(39400*200%)= 78800	(3200*200%)= 6400
Total cost	$86000	$65300	$132900	$141400	$16600

2)

Date	Account titles and explanation	Debit	Credit
a	Raw materials inventory	$240000
	Account payable		$240000
	(To record raw materials purchased on account)
b	Work in process inventory	$133500
	Factory overhead	$21500
	Raw materials inventory		$155000
	(To record raw materials used)
c	Factory overhead	$15500
	Cash		$15500
	(To record cash paid)
d	Work in process inventory	$102900
	Factory overhead	$26000
	Factory payroll		$128900
	(To record labor used)
e	Work in process inventory	$178200
	Factory overhead		$178200
	(To record factory overhead applied of Jobs 136, 138 and 139)
f	Finished goods inventory	$360300
	Work in process inventory		$360300
	(To record transferred of Job 136, 138 and 139 to finished goods)
g	Account receivable	$530000
	Sales		$530000
	(To record sales)
	Cost of goods sold	$218900
	Finished goods inventory		$218900
	(To record cost of goods sold)
h	Factory overhead	$151500
	Accumulated depreciation- Factory building		$68500
	Accumulated depreciation- Factory equipment		$37000
	Prepaid insurance		$11000
	Property tax payable		$35000
	(To record actual factory overhead)
i	Work in process inventory	$27600
	Factory overhead		$27600
	(To record overhead applied of Job 137 and 140)

a) Applied overhead to jobs 136, 138 and 139= $(24000+75400+78800)= $178200

b) Transferred jobs= Job 136+ Job 138+ Job 139

= $86000+132900+141400= $360300

c) Cost of goods sold of job 136 and 138= $86000+132900= $218900

d) Applied overhead to jobs 137 and 140= $21200+6400= $27600

3)

Raw materials Inventory					Work in process Inventory
Beg. bal.	$0				Beg. bal.	$0
a	240000	155000	b		b	133500	360300	f
					d	102900
					e	178200
					i	27600
End. bal.	$85000				End. bal.	$81900
Factory overhead					Finished goods Inventory
Beg. bal.	$0				Beg. bal.	$0
b	21500	178200	e		f	360300	218900	g
c	15500	27600	i
d	26000
h	151500
End. bal.	$8700				End. bal.	$141400
Cost of Goods Sold
Beg. bal.	$0
g	218900
End. bal.	$218900

4)

Report of Job Costs
Work in process Inventory
Job 137	$65300
Job 140	16600
Balance	$81900
Finished goods Inventory
Job 139	$141400
Balance	$141400
Cost of Goods Sold
Job 136	$86000
Job 138	132900
Balance	$218900