Question

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 $ 49,500 34,000 20,000 22,400 6,600 132,500 21,000 $153,500 c. Pald $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 5 Job 137 Job 135 ob 138 12,100 10,700 38,100 39.00 < Prey 6 7 8 of 8 Next > o 1900

Answer 1

	136	137	138	139	140	Total
Direct Material	$          49,500	$       34,000	$      20,000	$          22,400	$    6,600	$     1,32,500
Direct Labor	$          12,100	$       10,700	$      38,100	$          39,600	$    3,000	$     1,03,500
Overhead Applied	$          24,200	$       21,400	$      76,200	$          79,200	$    6,000	$     2,07,000
Total Costs	$          85,800	$       66,100	$ 1,34,300	$      1,41,200	$ 15,600	$     4,43,000

	Account Titles	Debit	Credit
a	Raw Material Inventory	$       2,20,000
	Accounts Payable		$    2,20,000
b	Work in Process Inventory	$       1,32,500
	Manufacturing Overhead	$          21,000
	Raw Material Inventory		$    1,53,500
c	Manufacturing Overhead	$          15,000
	Cash		$       15,000
d	Work in Process Inventory	$       1,03,500
	Manufacturing Overhead	$          26,500
	Raw Material Inventory		$    1,30,000
e	Work in Process Inventory	$       1,79,600
	Manufacturing Overhead		$    1,79,600
f	Finished Goods Inventory	$       3,61,300
	Work in Process Inventory		$    3,61,300
g	Accounts Receivable	$       5,30,000
	Sales Revenue		$    5,30,000
	Cost of Goods sold	$       2,20,100
	Finished Goods Inventory		$    2,20,100
h	Manufacturing Overhead	$       1,54,000
	Acc Dep - Factory Building		$       68,500
	Acc Dep - Factory Equipment		$       36,500
	Prepaid Insurance		$       12,000
	Property Taxes Payable		$       37,000
i.	Work in Process Inventory	$          27,400
	Manufacturing Overhead		$       27,400