Question

[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 49, See 33,5ee 19,600 23,eee 6. Bee 132,400 20,50e 152.900 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 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total 12.30 10.700 37.900 39,400 280 103. sas

Answer 1

Answer to first question in the list (Widmer Watercraft Problem): 1) Schedules: Totals Direct Materials Direct Labors Factory Overhead Total costs allocated to the jobs Status at the end Job 136 $49,500 $2,775 $5,550 $57,825 Sold Finished Goods WIP Job 138 | Job 139 | Job 137 Job 140 $19,600 $23,000 $33,500 $6,800 $1,875 $6,860 $3,750 $5,250 $3,750 $13,720 $7,500 $10,500 $25,225 $43,580 $44,750 $22,550 Unsold WIP WIP $132,400 $20,510 $41,020 $193,930 [Ref: NOTE-1] Sold Total Costs accounted for $83,050 (Cost of Goods Sold) ($57825 + $25225) $43,580 (End. F.G.) $67,300 (Ending W.I.P.) ($44750 + $22550)

NOTE-1 Credit Event 1) Debit $220,000 $220,000 Job 136 137 138 139 140 Ref: NOTE-1 $132,400 $20,500 Materials Direct Labor $49,500 $2,775 $33,500 $3,750 $19,600 $1,875 $23,000 $6,860 $6,800 $5,250 $132,400 $20,510 $20,500 $4,100 $152,900 $24,610 Total $52,275 $37,250 $21,475 $29,860 $12,050 $152,910 $24,000 $176,910 $152,900 $15,500 (Used for WIP] (Used for FOH] $15,500 Gen. factory Ref: NOTE-1 General Journal Materials Accounts Payable Work in Process Factory overhead Materials Factory overhead Cash Work in Process Factory overhead Cash Work in Process Factory overhead Finished Goods Work in Process Accounts Receivable Sales revenue Cost of Goods Sold Finished Goods $20,510 $4,100 $24,610 $23,020 Ref: NOTE-1 $23,020 Job 136 138 139 Direct Labor $2,775 $1,875 $6,860 $11,510 Rate 200% 200% 200% 200% $126,630 ($83050 + $43580] Applied FOH $5,550 ($2775 x $200%] $3,750 ($1875 x $200%] $13,720 ($6860 x $200%] $23,020 --> FOH applied to Job 136, 138 & 139 $126,630 $550,000 $550,000 8) $83,050 [Ref: Schedules] $83,050

91 $153,500 Job 137 140 Factory overhead Accumulated depreciation-Building Accumulated depreciation-Equip. Prepaid Insurance Property taxes payable Work in Process Factory overhead $70,000 $38,000 $10,000 $35,500 Direct Labor $3,750 $5,250 $9,000 Rate 200% 200% 200% Applied FOH $7,500 ($3750 x $200%] $10,500 ($5250 x $200%] $18,000 --> FOH applied to Job 136, 138 & 139 10) $18,000 Ref: NOTE-1 $18,000 3) Beg. Bal. Materials $02) $220,000 $152,900 Beg. Bal. $126,630 Beg. Bal. Finished Goods $08) $126,630 $83,050 1) Work in Process $06) $132,400 $20,510 $23,020 $18,000 $67,300 5) 10) End. Bal. End. Bal. $67,100 End. Bal. $43,580

Cost of Goods Sold Beg. Bal. Beg. Bal. $23,020 $18,000 Bes. Bal. $o Ses.So 8) $83,050 Factory Overhead $05) $20,500 10) $15,500 $4,100 $153,500 $152,580 End. Bal. End. Bal. $83,050 $0 $44,750 $22,550 $67,300 Report of Job Costs Work in Process Inventory Beginning balance Job 137 Job 140 Balance Finished Goods Inventory Beginning balance Job 139 Balance Cost of Goods Sold Beginning balance Job 136 Job 138 Balance $0 $43,580 $43,580 $0 $57,825 $25,225 $83,050