Question

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

[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, $220,000.

Materials requisitions record use of the following materials for the month.

Job 136	$50,000
Job 137	33,500
Job 138	19,400
Job 139	22,800
Job 140	6,600
Total direct materials	132,300
Indirect materials	20,500
Total materials used	$152,800

Paid $15,500 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	10,500
Job 138	37,700
Job 139	39,200
Job 140	3,400
Total direct labor	103,000
Indirect labor	25,500
Total	$128,500

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	$69,500
Depreciation of factory equipment	37,000
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.

rev: 02_01_2017_QC_CS-77139

Problem 19-3A Part 1

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

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

[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, $220,000.

Materials requisitions record use of the following materials for the month.

Job 136	$50,000
Job 137	33,500
Job 138	19,400
Job 139	22,800
Job 140	6,600
Total direct materials	132,300
Indirect materials	20,500
Total materials used	$152,800

Paid $15,500 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	10,500
Job 138	37,700
Job 139	39,200
Job 140	3,400
Total direct labor	103,000
Indirect labor	25,500
Total	$128,500

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	$69,500
Depreciation of factory equipment	37,000
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.

rev: 02_01_2017_QC_CS-77139

Problem 19-3A Part 2

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

Answer 1

		job 136	job 137	job138	job139	job140	total
Materials		50,000	33,500	19,400	22,800	6,600	132,300
labor		12,200	10,500	37,700	39,200	3,400	103,000
overhead		24,400	21000	75400	78400	6800	206,000
total		86,600	65,000	132,500	140,400	16,800	441,300
2)	TR	General Journal				Debit	Credit
	a)	Raw materials inventory				220,000
		Accounts payable					220,000
	b)	Work in process inventory				132,300
		Factory overhead				20,500
		Raw materials inventoy					152,800
	c)	Factory overhead				15,500
		cash					15,500
	d)	Work in process inventory				103,000
		Factory overhead				25,500
		Cash					128,500
	e)	Work in process overhead				178,200
		Factory overhead					178,200
	f)	finished goods inventory				359,500
		Work in process inventory					359,500
	g)	Accounts receivable				525,000
		Sales					525,000
		cost of goods sold				219,100
		finished goods inventory					219,100
	h)	Factory overhead				152,500
		Accumulated depreciation-factory building					69,500
		Accumulated depreciation-factory equipment					37,000
		prepaid insurance					11,000
		property taxes payable					35,000
	i)	work in process inventory				27,800
		Factory overhead					27,800