Question

Required information [The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $200,000. Materials requisitions record use of the following materials for the month. Job 136 $49,500 Job 137 32,500 Job 138 20,000 Job 139 23,200 Job 140 7,200 Total direct materials 132,400 Indirect materials 21,000 Total materials used $153,400 Paid $15,250 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 10,600 Job 138 37,700 Job 139 39,400 Job 140 3,400 Total direct labor 103,200 Indirect labor 26,000 Total $129,200 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 $550,000. 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 37,500 Expired factory insurance 11,000 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. rev: 02_01_2017_QC_CS-77139 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 136	job 137	job138	job139	job140	total
Materials		49,500	32,500	20,000	23,200	7,200	132,400
labor		12,100	10,600	37,700	39,400	3,400	103,200
overhead		24,200	21200	75400	78800	6800	206,400
total		85,800	64,300	133,100	141,400	17,400	442,000
2)	TR	General Journal				Debit	Credit
	a)	Raw materials inventory				200,000
		Accounts payable					200,000
	b)	Work in process inventory				132,400
		Factory overhead				21,000
		Raw materials inventoy					153,400
	c)	Factory overhead				15,250
		cash					15,250
	d)	Work in process inventory				103,200
		Factory overhead				26,000
		Cash					129,200
	e)	Work in process overhead				178,400
		Factory overhead					178,400
	f)	finished goods inventory				360,300
		Work in process inventory					360,300
	g)	Accounts receivable				550,000
		Sales					550,000
		cost of goods sold				218,900
		finished goods inventory					218,900
	h)	Factory overhead				153,500
		Accumulated depreciation-factory building					68,500
		Accumulated depreciation-factory equipment					37,500
		prepaid insurance					11,000
		property taxes payable					36,500
	i)	work in process inventory				28,000
		Factory overhead					28,000
	T- Accounts
Raw materials inventory					Work in process inventory
a.	200,000				b.	132,400
		153,400	b.		d.	103,200
					e.	178,400
end bal	46,600						360,300	f.
					i.	28000
					bal	81,700
Factory overhead					finished goods inventory
b.	21,000				f.	360,300
c.	15,250						218,900	g.
d.	26,000				bal	141,400
		178,400	e.
h.	153,500
		28,000	i
bal	9,350
cost of goods sold
g.	218,900
end bal	218,900
Report of Job costs
Work in process inventory
job 137			64,300
job 140			17,400
Balance			81,700
finished goods inventory
job 139			141,400
Balance			141,400
cost of goods sold
job 136			85,800
job 138			133,100
balance			218,900