Required information
[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.
Job 136 | $ | 50,000 | |
Job 137 | 32,500 | ||
Job 138 | 19,600 | ||
Job 139 | 22,600 | ||
Job 140 | 7,000 | ||
Total direct materials |
131,700 |
||
Indirect materials | 20,000 | ||
Total materials used | $ | 151,700 | |
Job 136 | $ | 12,200 | |
Job 137 | 10,600 | ||
Job 138 | 37,700 | ||
Job 139 | 39,000 | ||
Job 140 | 3,600 | ||
Total direct labor | 103,100 | ||
Indirect labor | 24,000 | ||
Total | $ | 127,100 | |
Depreciation of factory building | $ | 68,500 | |
Depreciation of factory equipment | 37,500 | ||
Expired factory insurance | 11,000 | ||
Accrued property taxes payable | 37,000 | ||
2. Prepare journal entries to record the events
and transactions a through i.
No. | Transaction. | Account titles and explanation | Debit | Credit |
1. | a. | Raw materials inventory | $240000 | |
Accounts payable | $240000 | |||
(To record raw materials purchased on credit) | ||||
2. | b. | Work in process inventory | $131700 | |
Factory overhead | $20000 | |||
Raw materials inventory | $151700 | |||
(To record | ||||
3. | c. | Factory equipment | $15500 | |
Cash | $15500 | |||
(To record factory equipment purchased) | ||||
4. | d. | Work in process inventory | $103100 | |
Factory overhead | $24000 | |||
Cash | $127100 | |||
(To record wages paid in cash) | ||||
5. | e. | Work in process inventory ($12200+37700+39000)*200% | $177800 | |
Factory overhead | $177800 | |||
(To record applied overhead to Jobs 136, 138, and 139) | ||||
6. | f. | Finished goods inventory | $358900 | |
Work in process inventory | $358900 | |||
(To record jobs transferred to finished goods) | ||||
7. | g. | Accounts receivable | $545000 | |
Sales revenue | $545000 | |||
(To record jobs sold on credit) | ||||
Cost of goods sold | $219300 | |||
Finished goods inventory | $219300 | |||
(To record cost of goods sold) | ||||
8. | h. | Factory overhead | $154000 | |
Accumulated depreciation- Factory building | $68500 | |||
Accumulated depreciation- Factory equipment | $37500 | |||
Prepaid insurance | $11000 | |||
Property tax payable | $37000 | |||
(To record overhead costs incurred) | ||||
9. | i. | Work in process inventory ($10600+3600)*200% | $28400 | |
Factory overhead | $28400 | |||
(To record applied overhead to Jobs 137 and 140) |
Calculation of Finished goods inventory
Finished goods inventory= Job 136+Job 138+Job 139
= $86600+132700+139600= $358900
Job 136= Direct materials+Direct labor+Factory overhead
Job 136= $50000+12200+(12200*200%)= $86600
Job 138= $19600+37700+(37700*200%)= $132700
Job 139= $22600+39000+(39000*200%)= $139600
Cost of goods sold= Job 136+Job 138
= $86600+132700= $219300
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Required information [The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate...
Required information [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. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 50,000 Job 137 32,500 Job 138 19,600 Job 139 22,600 Job 140 7,000 Total direct materials 131,700 Indirect materials 20,000 Total materials used $ 151,700...
Required information [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. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 50,000 Job 137 32,500 Job 138 19,600 Job 139 22,600 Job 140 7,000 Total direct materials 131,700 Indirect materials 20,000 Total materials used $ 151,700...
Required information [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. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $ 50,000 Job 137 33,500 Job 138 19,600 Job 139 22,600 Job 140 6,600 Total direct materials 132,300 Indirect materials 21,000 Total materials used $ 153,300 Paid $16,000 cash to a...
[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. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 33,000 Job 138 20,000 Job 139 23,000 Job 140 7,200 Total direct materials 131,700 Indirect materials 21,500 Total materials used $ 153,200 Paid $15,500...
Required information [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. Purchased raw materials on credit, $200,000. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 33,500 Job 138 19,200 Job 139 22,800 Job 140 7,200 Total direct materials 131,200 Indirect materials 20,500 Total materials used $ 151,700 Paid $15,000 cash to a...
Required information [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. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 33,500 Job 138 19,600 Job 139 22,800 Job 140 6,600 Total direct materials 131,000 Indirect materials 21,000 Total materials used $ 152,000...
Required information [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. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 33,500 Job 138 19,600 Job 139 22,800 Job 140 6,600 Total direct materials 131,000 Indirect materials 21,000 Total materials used $ 152,000...
Required information [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. $ 48,000 Job 136 Job 137 32,000 19,200 22,400 6,400 128,000 19,500 Job 138 Job 139 Job 140 Total direct materials Indirect materials $147,500 Total materials used c. Paid $15,000 cash...
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 $ 48,000 Job 137 32,000 Job 138 19,200 Job 139 22,400 Job 140 6,400 Total direct materials 128,000 Indirect materials 19,500 Total materials used $ 147,500 Paid $15,000 cash to a computer consultant to reprogram factory equipment. Time tickets record...
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. Purchased raw materials on credit, $260,000. Materials requisitions record use of the following materials for the month. Job 136 $ 50,000 Job 137 32,500 Job 138 20,200 Job 139 22,400 Job 140 6,400 Total direct materials 131,500 Indirect materials 21,000 Total materials used $ 152,500 Paid $15,750 cash to a computer consultant to reprogram factory equipment....