Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May
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Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.
- Purchased raw materials on credit, $200,000.
Materials requisitions record use of the following materials for the month.
| Job 136 | $ 48,000 |
|---|---|
| Job 137 | 32,000 |
| Job 138 | 19,200 |
| Job 139 | 22,400 |
| Job 140 | 6,400 |
| Total direct materials | 128,000 |
| Indirect materials | 19,500 |
| Total materials requisitions | $ 147,500 |
Time tickets record use of the following labor for the month. These wages were paid in cash.
| Job 136 | $ 12,000 |
|---|---|
| Job 137 | 10,500 |
| Job 138 | 37,500 |
| Job 139 | 39,000 |
| Job 140 | 3,000 |
| Total direct labor | 102,000 |
| Indirect labor | 24,000 |
| Total labor cost | $ 126,000 |
- Applied overhead to Jobs 136, 138, and 139.
- Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
- Sold Jobs 136 and 138 on credit at a total price of $525,000.
- Recorded the cost of goods sold for Jobs 136 and 138.
Incurred the following actual other overhead costs during the month.
| Depreciation of factory building | $ 68,000 |
|---|---|
| Depreciation of factory equipment | 36,500 |
| Expired factory insurance | 10,000 |
| Accrued property taxes payable | 35,000 |
- Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and Job 140) using the predetermined overhead rate of 200% of direct labor cost.
3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.
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