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 $ 49,500 Job 137 33,500 Job 138 19,200 Job 139 22,800 Job 140 6,800 Total direct materials 131,800 Indirect materials 20,500 Total materials used $ 152,300 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 $ 12,200 Job 137 10,600 Job 138 38,100 Job 139 39,000 Job 140 3,800 Total direct labor 103,700 Indirect labor 25,000 Total $ 128,700 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 $525,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $ 68,500 Depreciation of factory equipment 38,000 Expired factory insurance 11,000 Accrued property taxes payable 35,000 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6MC: Which document lists the inventory that will be removed from the raw materials inventory? A. job...

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Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

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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, $220,000.
Materials requisitions record use of the following materials for the month.


Job 136	$	49,500
Job 137		33,500
Job 138		19,200
Job 139		22,800
Job 140		6,800
Total direct materials		131,800
Indirect materials		20,500
Total materials used	$	152,300

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	$	12,200
Job 137		10,600
Job 138		38,100
Job 139		39,000
Job 140		3,800
Total direct labor		103,700
Indirect labor		25,000
Total	$	128,700

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 $525,000.
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).


Depreciation of factory building	$	68,500
Depreciation of factory equipment		38,000
Expired factory insurance		11,000
Accrued property taxes payable		35,000

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.

2. Prepare journal entries to record the events and transactions a through i.
******:
View transaction list
View journal entry worksheet
No
Transaction
General Journal
Debit
Credit
1
Raw materials inventory
220,000
a.
Accounts payable
220,000
2
b.
Factory overhead
Work in process inventory
3
Factory overhead
Cash
4
d.
Work in process inventory
Factory overhead
e.
Work in process inventory
Factory overhead
f.
Finished goods inventory
Work in process inventory

7
g(1).
Accounts receivable
Sales
8
g(2).
Cost of goods sold
Finished goods inventory
9
h.
Factory overhead
Accum. depreciation-Factory building
Accum. depreciation-Factory equipment
Property taxes payable
Prepaid insurance
10
i.
Work in process inventory
Factory overhead
M....

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