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

Answer 1

37 38 Ques1 40 Materials Labor Overhead (200% of labor) Total cost Job No. 136 $ 48,000 $ 12,000 $ 24,000 $ 84,000 Job No. 137 $ 32,000 $ 10,500 $ 21,000 $ 63,500 Job No. 138 $ 19,200 $ 37,500 $ 75,000 $ 131,700 Job No. 139 $ 22,400 $ 39,000 $ 78,000 $ 139,400 Job No. 140 $ 6,400 $ 3,000 $ 6,000 $ 15,400 42 44

Ques 2
Transaction	General Journal	Debit	Credit
a.	Raw materials inventory	200,000
	Accounts payable		200,000
b.	Work in process inventory	128,000
	Factory overhead	19,500
	Raw materials inventory		147,500
c.	Factory overhead	15,000
	Cash		15,000
d.	Work in process inventory	102,000
	Factory overhead	24,000
	Cash		126,000
e	Work in process inventory	$                177,000
	Factory overhead		177,000
	24000+75000+78000
f	Finished goods inventory	355,100
	Work in process inventory		355,100
	84000+131700+139400
g(1).	Accounts receivable	525,000
	Sales		525,000
g(2).	Cost of goods sold	215,700
	Finished goods inventory		215,700
	84000+131700
h.	Factory overhead	149,500
	Accum. depreciation—Factory building		68,000
	Accum. depreciation—Factory equipment		36,500
	Prepaid insurance		10,000
	Property taxes payable		35,000
i	Work in process inventory	27,000
	Factory overhead		27,000
	21000+6000

Ques 3 Raw Materials Inventory 200,000 147 500lb 52,500 Finished goods Inventory | 355,100 215,7009 139,400 End Balance End Balance Cost of goods sold 215,700 9 b d Work in process inventory 128.000 102,000 177,000 355, 1001 27,000 End Balance 215,700 T b end balance 78,900 d Factory overhead 19,500 15,000 24,000 149,500 177,000 e 27,000| 4,000 h end balance

Reports of Job Costs Goods in Process Inventory Job 137 Job 140 $ 63.500) 15,400 78,900 Balance Finished Goods Inventory Job 139 139,400 139,400 Balance Cost of Goods Sold Job 136 Job 138 84,000 131,700 Balance 215,700