Question

See below answers. This was what I was given the first time I submitted this question, with the exception of the letters on each side.

Required information

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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	$	49,000
Job 137		33,500
Job 138		20,200
Job 139		22,800
Job 140		7,000
Total direct materials		132,500
Indirect materials		21,000
Total materials used	$	153,500

Paid $15,750 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		10,700
Job 138		37,900
Job 139		39,600
Job 140		3,200
Total direct labor		103,500
Indirect labor		25,500
Total	$	129,000

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 $545,000.

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

Depreciation of factory building	$	70,000
Depreciation of factory equipment		38,000
Expired factory insurance		11,000
Accrued property taxes payable		35,500

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.

Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Raw Materials Inventory Work in Process Inventory a.selected answer correct 220,000selected answer correct 132,500selected answer incorrect b.selected answer correct b.selected answer correct 132,500selected answer correct 360,800selected answer correct b.selected answer incorrect not attempted not attempted 21,000selected answer incorrect b.selected answer incorrect b.selected answer incorrect 103,500selected answer correct 82,200selected answer incorrect b.selected answer incorrect not attempted not attempted 66,500selected answer incorrect b.selected answer incorrect b.selected answer incorrect 179,200selected answer correct not attempted not attempted End.bal. 0 not attempted b.selected answer incorrect 27,800selected answer correct not attempted not attempted not attempted not attempted not attempted not attempted End.bal. 0 Factory Overhead Finished Goods Inventory e.selected answer incorrect 21,000selected answer correct 179,200selected answer correct e.selected answer correct b.selected answer incorrect 360,800selected answer correct 219,200selected answer correct b.selected answer incorrect e.selected answer incorrect 25,500selected answer correct 27,800selected answer correct e.selected answer incorrect b.selected answer incorrect not attempted 141,600selected answer incorrect b.selected answer incorrect e.selected answer incorrect 11,000selected answer incorrect not attempted not attempted b.selected answer incorrect not attempted not attempted not attempted e.selected answer incorrect 35,500selected answer incorrect not attempted not attempted End.bal. 0not attempted not attempted not attempted c.selected answer correct 15,750selected answer correct not attempted not attempted End.bal. 98,250 not attempted Cost of Goods Sold i.selected answer incorrect 219,200selected answer correct 219,200selected answer incorrect i.selected answer incorrect not attempted not attempted not attempted not attempted not attempted not attempted not attempted not attempted End.bal. 0 not attempted

Answer 1

In the books of Windmer Watercrafts:

Transaction / Event	Account Titles	Debits	Credits
		$	$
1.	Raw Materials Inventory	220,000
	Accounts Payable		220,000
2.	Work in Process Inventory	132,500
	Factory Overhead	21,000
	Raw Materials Inventory		153,500
3.	Factory Overhead	15,750
	Cash		15,750
4.	Work in Process Inventory	103,500
	Factory Overhead	25,500
	Cash		129,000
5.	Work in Process Inventory	179,200
	Factory Overhead		179,200
6.	Finished Goods Inventory	360,800
	Work in Process Inventory		360,800
7.	Accounts Receivable	545,000
	Sales		545,000
7.	Cost of Goods Sold	219,200
	Finished Goods Inventory		219,200
8.	Factory Overhead	154,500
	Accumulated Depreciation : Building		70,000
	Accumulated Depreciation : Equipment		38,000
	Prepaid Insurance		11,000
	Property Taxes Payable		35,500
9.	Work in Process Inventory	27,800
	Factory Overhead		27,800

Cost Sheet: May 2017

	136	137	138	139	140	Total
Beginning Balance	0	0	0	0	0	0
Manufacturing Costs during May 2017
Direct Materials	49,000	33,500	20,200	22,800	7,000	132,500
Direct Labor	12,100	10,700	37,900	39,600	3,200	103,500
Factory Overhead ( 200% of direct labor)	24,200	21,400	75,800	79,200	6,400	207,000
Total Manufacturing Costs	85,300	65,600	133,900	141,600	16,600	443,000
Less: Cost of Goods Manufactured	(85,300)	0	(133,900)	(141,600)	0	(360,800)
Ending Balance	0	65,600	0	0	16,600	82,200

Raw Materials Inventory:

Balance, May 1	$ 0	Work in Process Inventory	$ 132,500
Purchase	220,000	Factory Overhead	21,000
Balance, May 31	66,500

Work in Process Inventory:

Balance, May 1	$ 0	Cost of Goods Manufactured	360,800
Direct Materials	132,500
Direct Labor	103,500
Factory Overhead	179,200
Factory Overhead	27,800
Balance, May 31	82,200

Finished Goods Inventory:

Balance, May 1	$ 0	Cost of Goods Sold	219,200
Cost of Goods Manufactured	360,800
Balance, May 31	141,600

Cost of Goods Sold:

Finished Goods Inventory	219,200

Factory Overhead:

Balance, May 1	$ 0	Overhead Applied	$ 179,200
Indirect Materials	21,000	Overhead Applied	27,800
Indirect Labor	25,500
Factory Repairs	15,750
Depreciation Expense: Buildings	70,000
Depreciation Expense : Equipment	38,000
Factory Insurance	11,000
Property Taxes	35,500
Overhead Underapplied	9,750