Question

Problem 15-3A 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, $220.000. b. Materials requisitions record use of the following materials for the month $ 50.000 32.500 19,600 23,200 Job 136 Job 137 Job 38 Job 139 Job 140 Total direct materials Indirect materials Total materials used 7.200 132,500 20,000 $152,500 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. X Job 136 Bcb 137 Job 138 Job 139 Job 140 Total direct 2 Indirect Total $ 12,200 10.700 37.500 39.000 3,600 10.000 25,000 $128.000 e. Applied overhead to Jobs 136, 138, and 139.00 Transferred Jobs 136, 138, and 139 to Finished Goods. 9. Sold Jobs 136 and 138 on credit at a total price of $530,000. 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 369,000 38.500 12.000 36.000 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

Answer 1

3)

Raw materials Inventory					Work in process Inventory
Beg. bal.	$0				Beg. bal.	$0
a	220000				b	132500	358900	f
		152500	b		d	103000
					e	177400
End. bal.	$67500				i	28600
					End. bal.	$82600
Factory overhead					Finished goods Inventory
b	20000				Beg. bal.	$0
c	15500	177400	e		f	358900	218700	g
d	25000	28600	i
h	155500				End. bal.	$140200
End. bal.	10000
Cost of Goods Sold
g	218700
End. bal.	218700

Overhead applied to Job 136, 138 and 139= ($12200+37500+39000)*200%= $177400

Overhead applied to Jobs 137 and 140= ($10700+3600)*200%= $28600

Jobs 136, 138 and 139 transferred to finished goods= Direct materials+Direct labor+Manufacturing overhead applied

Direct materials= $50000+19600+23200= $92800

Direct labor= $12200+37500+39000= $88700

Manufacturing overhead applied= ($12200+37500+39000)*200%= $177400

Jobs 136, 138 and 139 transferred to finished goods= $92800+88700+177400= $358900

Cost of goods sold= Jon 136+Job 138

= $50000+19600+12200+37500+(12200+37500)*200%= $218700

Factory overhead in adjustment (h)= $69000+38500+12000+36000= $155500