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 $ 48,000 32,000 19,200 22,400 6,400 128,000 19,500 $ 147,500 C. Paid $15,000 cash to a computer consultant to reprogram factory equipment.

Answer 1

		job 136	job 137	job138	job139	job140	total
Materials		48,000	32,000	19,200	22,400	6,400	128,000
labor		12,000	10,500	37,500	39,000	3,000	102,000
overhead		24,000	21000	75000	78000	6000	204,000
total		84,000	63,500	131,700	139,400	15,400	434,000
2)	TR	General Journal				Debit	Credit
	a)	Raw materials inventory				200,000
		Accounts payable					200,000
	b)	Work in process inventory				128,000
		Factory overhead				19,500
		Raw materials inventoy					147,500
	c)	Factory overhead				15,000
		cash					15,000
	d)	Work in process inventory				102,000
		Factory overhead				24,000
		Cash					126,000
	e)	Work in process overhead				177,000
		Factory overhead					177,000
	f)	finished goods inventory				355,100
		Work in process inventory					355,100
	g)	Accounts receivable				525,000
		Sales					525,000
		cost of goods sold				215,700
		finished goods inventory					215,700
	h)	Factory overhead				149,500
		Accumulated depreciation-factory building					68,000
		Accumulated depreciation-factory equipment					36,500
		prepaid insurance					10,000
		property taxes payable					35,000
	i)	work in process inventory				27,000
		Factory overhead					27,000
	T- Accounts
Raw materials inventory					Work in process inventory
a.	200,000				b.	128,000
		147,500	b.		d.	102,000
					e.	177,000
end bal	52,500						355,100	f.
					i.	27000
					bal	78,900
Factory overhead					finished goods inventory
b.	19,500				f.	355,100
c.	15,000						215,700	g.
d.	24,000				bal	139,400
		177,000	e.
h.	149,500
		27,000	i
bal	4,000
cost of goods sold					Factory payroll
g.	215,700				no entry since all factory wages
end bal	215,700				paid in cash