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, $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 $ 49,500 32,500 19,600 23,000 6,800 131,400 21,500 $152,900 c. Paid $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 $ 12,200 10,800 37,500 39,400 3, Bee 103,700 26,000 $129,700

Answer 1

Solution: Report of Job Costs Work in Process Inventory Job 137 Job 140 $64,900 $18,200 Balance $83,100 Finished Goods Inventory Job 139 $141,200 Balance $141,200 Cost of Goods Sold Job 136 Job 138 $86,100 $132,100 Balance $218,200 Explanation: Particulars Materials Labor Overhead (200% of labor) Total cost Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 $49,500 $32,500 $19,600 $23,000 $6,800 $12,200 $10,800 $37,500 $39,400 $3,800 $24,400 $21,600 $75,000 $78,800 $7,600 $86,100 $64,900 $132,100 $141,200 $18,200