Question

^{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, $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 $ 48,500 33,500 19,600 23,200 6,600 131,400 21, eee $152,400 c. Paid $15,250 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 10,700 37,900 39,400 3,600 103,800 27, eee $130,800 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 $530,000. 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 $68,500 37,000 10,000 35,000 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

1.

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials	$48,500	$ 33,500	$19,600	$ 23,200	$ 6,600
Labor	12,200	10,700	37,900	39,400	3,600
Overhead	24,400	21,400	75,800	78,800	7,200
Total Cost	$ 85,100	$ 65,600	$ 133,300	$ 141,400	$17,400

2.

Transaction	General Journal	Debit	Credit
		$	$
a.	Raw Materials Inventory	220,000
	Accounts Payable		220,000
b.	Work in Process Inventory	131,400
	Factory Overhead	21,000
	Raw Materials Inventory		152,400
c.	Factory Overhead	15,250
	Cash		15,250
d.	Work in Process Inventory	103,800
	Factory Overhead	27,000
	Cash		130,800
e.	Work in Process Inventory	179,000
	Factory Overhead		179,000
f.	Fiished Goods Inventory	359,800
	Work in Process Inventory		359,800
g.i.	Accounts Receivable	530,000
	Sales Revenue		530,000
g.ii.	Cost of Goods Sold	218,400
	Finished Goods Inventory		218,400
h.	Factory overhead	150,500
	Accumulated Depreciation : Building		68,500
	Accumulated Depreciation : Equipment		37,000
	Prepaid Insurance		10,000
	Property Taxes Payable		35,000
i.	Work in Process Inventory	28,600
	Factory Overhead		28,600

3.

Raw Materials Inventory
a.	220,000	b.	152,400
Balance, May 31	67,600
Work in Process Inventory
b.	131,400	f.	359,800
d.	103,800
e.	179,000
i.	28,600
Balance, May 31	83,000
Finished Goods Inventory
f.	359,800	g.ii.	218,400
Balance, May 31	141,400
Factory Overhead
b.	21,000	e.	179,000
c.	15,250	i.	28,600
d.	27,000
h.	150,500
			6,150
Cost of Goods Sold
g.ii.	218,400

4.

Repot of Job Costs
Work in Process Inventory
Job No. 137	$ 65,600
Job. No. 140	17,400
Balance	$ 83,000
Finished Goods Inventory
Job No. 139	$ 141,400
Balance	$ 141,400
Cost of Goods Sold
Job 136	85,100
Job 138	133,300
Balance	$ 218,400