In: Accounting
Required information
[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.
| 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 |