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 year 2015 is 200% of direct labor. Information on the company's production activities during May 2015 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 $ 48,500 33,000 19,400 22,600 7,400 Job 139 Job 140 Total direct materials Indirect materials 130,900 21,500 Total materials used $152,400 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 $ 12,200 10,700 38,100 39,600 3,600 Total direct labor Indirect labor 104,200 25,500 Total $ 129,700 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 insurance). Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69,000 37,000 11,000 37,000 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

Requirement (1) Job No. 136 Materials $ Labor $ Overhead (200% of labor | $ Total cost $ Job No. 137 Job No. 138 Job No. 139 Job No. 140 48,500 $ 33,000 $ 19,400 $ 22,600 $ 7,400 12,200 $ 10,700 $ 38,100 $ 39,600 $ 3,600 24,400 $ 21,400 $ 76,200 $ 79,200 $ 7,200 85,100 $ 65,100 $ 133,700 $ 141,400 $ 18,200 Requirement (2) Transaction a. Credit General Journal Raw materials inventory Accounts payable Debit $ 220,000 $ 220,000 b. Work in Process inventory Factory overhead Raw materials inventory $ 130,900 $ 21,500 $ 152,400 C. Factory Overhead Cash $ 15,500 $ 15,500 d. Work in Process inventory Factory overhead Cash $ 104,200 $ 25,500 $ 129,700 e $ 179,800 Work in Process inventory Factory overhead $ 179,800 f. Finished goods inventory Work in Process inventory $ 360,200 $ 360,200 g(1). Accounts Receivables Sales $ 525,000 $ 525,000 g(2). $ 218,800 Cost of goods sold Finished goods inventory $ 218,800 h. $ 154,000 Factory overhead Accumulated Depreciation-Factory Building Accumulated Depreciation-Factory Equipment Prepaid Insurance Property Taxes Payable $ 69,000 $ 37,000 $ 11,000 $ 37,000 Work in Process inventory Factory overhead $ 28,600 $ 28,600

Requirement (3) Raw Materials Inventory Beg Bal $ a. $ 220,000 $152,400 b. Work In Process Inventory Beg Bal $ b. $ 130,900 $360,200 f. d. $ 104,200 e. $ 179,800 i. $ 28,600 Requirement (4) Reports of Job Costs Work in Process Inventory Job 137 $ Job 140 $ 65,100 18,200 $ 83,300 Balance Finished Goods Inventory Job 139 $ 141,400 End Bal $ 67,600 End Bal $ 83,300 $ 141,400 Balance Cost of Goods Sold Job 136 Job 138 Finished Goods Inventory Beg Bal $ f. $360,200 $ 218,800 9(2). $ $ 85,100 133,700 Beg Bal b. c. d. h. Factory Overhead $ $ 21,500 $ 179,800 e. $ 15,500 $ 28,600 i. $ 25,500 $154,000 Balance $ 218,800 End Bal $ 8,100 End Bal $ 141,400 Beg Bal g(2) Cost of goods sold $ $ 218,800 End Bal $ 218,800