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Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows.

 

Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows.

a. Purchased raw materials on credit, $220,000.
b. Materials requisitions record use of the following materials for the month.
        
  Job 136 $ 49,500  
  Job 137   32,000  
  Job 138   19,600  
  Job 139   23,000  
  Job 140   7,200  
        
  Total direct materials   131,300  
  Indirect materials   21,500  
        
  Total materials used $ 152,800  
        
 
c. Paid $15,750 cash to a computer consultant to reprogram factory equipment.
d. Time tickets record use of the following labor for the month. These wages were paid in cash.
        
  Job 136 $ 12,200  
  Job 137   10,500  
  Job 138   38,100  
  Job 139   39,200  
  Job 140   3,800  
        
  Total direct labor   103,800  
  Indirect labor   24,500  
        
  Total $ 128,300  
        
 
e. Applied overhead to Jobs 136, 138, and 139.
f. Transferred Jobs 136, 138, and 139 to Finished Goods.
g. Sold Jobs 136 and 138 on credit at a total price of $545,000.
h. 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   36,500  
  Expired factory insurance   10,000  
  Accrued property taxes payable   35,000  
 
i.

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.

Required:
1.

Prepare a job cost sheet for each job worked on during the month.

 
 
  Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140
Materials          
Labor          
Overhead          
Total cost          
2.

Prepare journal entries to record the events and transactions a through i.

   

3/Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts

Raw Materials InventoryWork in Process InventoryEnd.bal.End.bal.Factory OverheadFinished Goods InventoryEnd.bal.End.bal.Cost of Goods SoldEnd.bal.

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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   32,000   Job 138   19,600   Job 139   22,600   Job 140   7,000   Total direct materials   130,700   Indirect materials   21,000   Total materials used $...
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