Question

Required information

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, $260,000.

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

Job 136	$	48,000
Job 137		33,500
Job 138		20,000
Job 139		23,400
Job 140		6,800
Total direct materials		131,700
Indirect materials		21,500
Total materials used	$	153,200

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	$	12,000
Job 137		10,800
Job 138		38,100
Job 139		39,400
Job 140		3,800
Total direct labor		104,100
Indirect labor		26,000
Total	$	130,100

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	$	68,000
Depreciation of factory equipment		38,000
Expired factory insurance		10,000
Accrued property taxes payable		36,000

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 3

3. 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. 260,000 260,000 b. b. End.bal. 0 End.bal. 0 Factory Overhead Finished Goods Inventory b. e. g. End.bal. 0 End.bal. 0 Cost of Goods Sold End.bal. 0

Answer 1

		job 136	job 137	job138	job139	job140	total
Materials		48,000	33,500	20,000	23,400	6,800	131,700
labor		12,000	10,800	38,100	39,400	3,800	104,100
overhead		24,000	21600	76200	78800	7600	208,200
total		84,000	65,900	134,300	141,600	18,200	444,000
2)	TR	General Journal				Debit	Credit
	a)	Raw materials inventory				260,000
		Accounts payable					260,000
	b)	Work in process inventory				131,700
		Factory overhead				21,500
		Raw materials inventoy					153,200
	c)	Factory overhead				15,500
		cash					15,500
	d)	Work in process inventory				104,100
		Factory overhead				26,000
		Cash					130,100
	e)	Work in process overhead				179,000
		Factory overhead					179,000
	f)	finished goods inventory				359,900
		Work in process inventory					359,900
	g)	Accounts receivable				525,000
		Sales					525,000
		cost of goods sold				218,300
		finished goods inventory					218,300
	h)	Factory overhead				152,000
		Accumulated depreciation-factory building					68,000
		Accumulated depreciation-factory equipment					38,000
		prepaid insurance					10,000
		property taxes payable					36,000
	i)	work in process inventory				29,200
		Factory overhead					29,200
	T- Accounts
Raw materials inventory					Work in process inventory
a.	260,000				b.	131,700
		153,200	b.		d.	104,100
					e.	179,000
end bal	106,800						359,900	f.
					i.	29200
					bal	84,100
Factory overhead					finished goods inventory
b.	21,500				f.	359,900
c.	15,500						218,300	g.
d.	26,000				bal	141,600
		179,000	e.
h.	152,000
		29,200	i
bal	6,800
cost of goods sold
g.	218,300
end bal	218,300
Report of Job costs
Work in process inventory
job 137			65,900
job 140			18,200
Balance			84,100
finished goods inventory
job 139			141,600
Balance			141,600
cost of goods sold
job 136			84,000
job 138			134,300
balance			218,300