In: Accounting
Required information
[The following information applies to the questions
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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.
Job 136 | $ | 48,500 | |
Job 137 | 33,500 | ||
Job 138 | 19,400 | ||
Job 139 | 23,400 | ||
Job 140 | 7,200 | ||
Total direct materials |
132,000 |
||
Indirect materials | 19,500 | ||
Total materials used | $ | 151,500 | |
Job 136 | $ | 12,100 | |
Job 137 | 10,600 | ||
Job 138 | 37,700 | ||
Job 139 | 39,000 | ||
Job 140 | 3,400 | ||
Total direct labor | 102,800 | ||
Indirect labor | 25,500 | ||
Total | $ | 128,300 | |
Depreciation of factory building | $ | 69,500 | |
Depreciation of factory equipment | 37,000 | ||
Expired factory insurance | 11,000 | ||
Accrued property taxes payable | 36,500 | ||
1. Prepare journal entries to record the events and transactions a through i.
Job 136 | Job 137 | Job 138 | Job 139 | Job 140 | |
Direct materials | 48500 | 33500 | 19400 | 23400 | 7200 |
Direct labor | 12100 | 10600 | 37700 | 39000 | 3400 |
Overhead | 24200 | 21200 | 75400 | 78000 | 6800 |
Total | 84800 | 65300 | 132500 | 140400 | 17400 |
Journal: | |||||
Transaction | General Journal | Debit | Credit | ||
a. | Raw materials inventory | 200,000 | |||
Accounts payable | 200,000 | ||||
b | Goods in process inventory | 132,000 | |||
Factory overhead | 19,500 | ||||
Raw materials inventory | 151,500 | ||||
c. | Factory overhead | 15,750 | |||
Cash | 15,750 | ||||
d | Goods in process inventory | 102,800 | |||
Factory overhead | 25,500 | ||||
Factory payroll | 128,300 | ||||
e | Goods in process inventory | 177,600 | =24200+75400+78000 | ||
Factory overhead | 177,600 | ||||
f | Finished goods inventory | 357,700 | =84800+132500+140400 | ||
Goods in process inventory | 357,700 | ||||
g | Accounts receivable | 530,000 | |||
Sales | 530,000 | ||||
g | Cost of goods sold | 217,300 | =84800+132500 | ||
Finished goods inventory | 217,300 | ||||
h | Factory overhead | 154,000 | |||
Accum. depreciation—Factory building | 69,500 | ||||
Accum. depreciation—Factory equipment | 37,000 | ||||
Prepaid insurance | 11,000 | ||||
Property taxes payable | 36,500 | ||||
i | Goods in process inventory | 28,000 | =21200+6800 | ||
Factory overhead | 28,000 |