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, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 49,500 Job 137 32,500 Job 138 19,400 Job 139 22,800 Job 140 6,800 Total direct materials 131,000 Indirect materials 20,000 Total materials used $ 151,000 Paid $15,000 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 $ 12,100 Job 137 10,800 Job 138 37,900 Job 139 39,400 Job 140 3,600 Total direct labor 103,800 Indirect labor 25,000 Total $ 128,800 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 $ 69,000 Depreciation of factory equipment 38,000 Expired factory insurance 10,000 Accrued property taxes payable 36,500 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. Raw Materials Inventory Work in Process Inventory End.bal. End.bal. Factory Overhead Finished Goods Inventory End.bal. End.bal. Cost of Goods Sold End.bal.

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, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 49,500 Job 137 32,500 Job 138 19,400 Job 139 22,800 Job 140 6,800 Total direct materials 131,000 Indirect materials 20,000 Total materials used $ 151,000 Paid $15,000 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 $ 12,100 Job 137 10,800 Job 138 37,900 Job 139 39,400 Job 140 3,600 Total direct labor 103,800 Indirect labor 25,000 Total $ 128,800 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 $ 69,000 Depreciation of factory equipment 38,000 Expired factory insurance 10,000 Accrued property taxes payable 36,500 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. Raw Materials Inventory Work in Process Inventory End.bal. End.bal. Factory Overhead Finished Goods Inventory End.bal. End.bal. Cost of Goods Sold End.bal.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 17P: Luna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the...

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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, $240,000.
Materials requisitions record use of the following materials for the month.


Job 136	$	49,500
Job 137		32,500
Job 138		19,400
Job 139		22,800
Job 140		6,800
Total direct materials		131,000
Indirect materials		20,000
Total materials used	$	151,000

Paid $15,000 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	$	12,100
Job 137		10,800
Job 138		37,900
Job 139		39,400
Job 140		3,600
Total direct labor		103,800
Indirect labor		25,000
Total	$	128,800

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	$	69,000
Depreciation of factory equipment		38,000
Expired factory insurance		10,000
Accrued property taxes payable		36,500

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.

Raw Materials Inventory		Work in Process Inventory



End.bal.

	End.bal.

Factory Overhead		Finished Goods Inventory



			End.bal.

End.bal.

Cost of Goods Sold



End.bal.

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