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 $ 48,500 33,500 20,000 22,600 6,600 131,200 20,000 $ 151,200 c. Paid $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.

Answer 1

3:

GENERAL LEDGER ACCOUNTS

Raw Materials Inventory
(a)	200,000	(b)	151,200
Bal.48,800
Work in Process Inventory		Factory Overhead
(b)	131,200	(f)	358,700		(c)	15,000	(e)	178,400
(d)	103,400				(b)	20,000	(j)	28,400
(e)	178,400				(d)	24,500
(j)	28,400				(h)	152,000
Bal.	82,700				Bal.	4,700
Finished Goods Inventory		Cost of Goods Sold
(f)	358,700	(g)	219,100		(g)	219,100
Bal.	139,600				Bal.	219,100

Workings:

JOB COST SHEETS

Job No. 136			Job No. 138
Materials............	$ 48,500		Materials............	$ 20,000
Labor..................	12,300		Labor..................	37,900
Overhead...........	24,600		Overhead...........	75,800
Total cost...........	$ 85,400		Total cost...........	$133,700
Job No. 137			Job No. 139
Materials............	$ 33,500		Materials............	$  22,600
Labor..................	10,800		Labor..................	39,000
Overhead...........	21,600		Overhead...........	78,000
Total cost...........	$ 65,900		Total cost...........	$139,600
			Job No. 140
			Materials............	$   6,600
			Labor..................	3,400
			Overhead...........	6,800
			Total cost...........	$ 16,800