Question

Problem 02-3A 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 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 $ 49,000 Job 137 32,000 Job 138 19,800 Job 139 22,600 Job 140 6,600 Total direct materials 130,000 Indirect materials 20,000 Total materials used $ 150,000 Paid $15,500 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,200 Job 137 10,600 Job 138 37,900 Job 139 39,200 Job 140 3,400 Total direct labor 103,300 Indirect labor 26,000 Total $ 129,300 Applied overhead to Jobs 136, 138, and 139. Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136 and 138 on credit at a total price of $540,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $ 69,500 Depreciation of factory equipment 38,000 Expired factory insurance 10,000 Accrued property taxes payable 35,500 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. Problem 02-3A

Part 3 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Answer 1

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials	49000	32000	19800	22600	6600
Labor	12200	10600	37900	39200	3400
Overhead	24400	21200	75800	78400	6800
Total cost	85600	63800	133500	140200	16800

3
Raw Materials Inventory					Work in process Inventory
a	220000	150000	b		b	130000	359300	f
					d	103300
					e	178600
End. Bal.	70000				i	28000
					End. Bal.	80600
Factory Overhead					Finished goods Inventory
b	20000				f	359300	219100	g
c	15500	e	178600
d	26000	i	28000
h	153000				End. Bal.	140200
End. Bal.	7900
Cost of goods sold
g	219100
End. Bal.	219100