Question

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 6.300 131,400 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 2.30 103.700 26,000 $129.700

Answer 1

Working:

Job Cost Sheet
	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140	Total
Materials	49500	32500	19600	23000	6800	131400
Labor	12200	10800	37500	39400	3800	103700
Overhead	24400	21600	75000	78800	7600	207400
Total cost $	86100	64900	132100	141200	18200	442500

3.

Raw Materials Inventory
Beg. Bal.	0	152900	b.
a.	200000
End. Bal.	47100
Work in Process Inventory
Beg. Bal.	0	359400	f.
b.	131400
d.	103700
e.	178200
i.	29200
End. Bal.	83100
Finished Goods Inventory
Beg. Bal.	0	218200	g(2)
f.	359400
End. Bal.	141200
Factory Overhead
Beg. Bal.	0
b.	21500	178200	e.
c.	15500	29200	i
d.	26000
h.	156000
End. Bal.	11600
Cost of Goods Sold
Beg. Bal.	0
g(2)	218200
End. Bal.	218200