4 Watkins Machinery Company uses a normal job costing system. The company has the following partial trial balance information for 10 points March, the last month of its fiscal year: Materials inventory (X, $17,250; Y, $11,500; Indirect materials, $28,750) Work-in-process inventory (this is Job 101) Finished goods inventory (this is Job 100) These transactions relate to the month of March: $ 57,500 28,800 48,000 a. Purchased direct materials and indirect materials with the following summary of receiving reports: Material X Material Y $57,500 57,500 Indirect materials Total 28,750 $ 143,750 b. Issued direct materials and indirect materials with this summary of requisitions: Material X Material Y Subtotal Indirect materials Total Job 101 $ 28,750 23,000 Job 102 $ 17,250 3,000 Total $ 46,000 $ 51,750 $ 20,250 26,000 $72,000 46,000 $110,000 10 4 c. Factory labor incurred is summarized by these time tickets: points Job 101 Job 102 Indirect labor Total $ 57,600 38,400 28,750 $124,750 d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows: Utilities Depreciation Insurance Total $2,075 86,250 14,375 103,500 e. Factory overhead costs were applied to jobs at the predetermined rate of $15 per machine hour. Job 101 incurred 6,900 machine hours; Job 102 used 4,600 machine hours. f. Job 101 was completed; Job 102 was still in process at the end of March. g. Job 100 and Job 101 were shipped to customers during March. Both jobs had gross margins of 20% based on manufacturing cost. h. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March. Return Required: 1. Prepare journal entries to record the transactions for the events from parts (a) through (g). 2. Compute the ending balance of the Work-in-process inventory account. 3. Compute the overhead variance and indicate whether it is overapplied or underapplied. 4. Close the overhead variance to the Cost of goods sold account. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare journal entries to record the transactions for the events from parts (a) through (g). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No. 1 Transaction General Journal (a) Materials inventory 2 (b) Accounts payable Work-in-process inventory Factory overhead Materials inventory 000 Debit Credit 143,750 143,750 72,000 46,000 118,000 3 (c) Work-in-process inventory 96,000 Factory overhead 28,750 Materials inventory 124,750 4 (d) Factory overhead 103,500 Utilities payable 2,875 Accumulated depreciation-Factory 86,250 Prepaid insurance 14,375 5 (e) Work-in-process inventory Factory overhead 172,500 172,500 6 (0) 7 B (g) Finished goods inventory Work-in-process inventor Accounts receivable Sales Cost of goods sold Finished goods inventory Required: 1. Prepare journal entries to record the transactions for the events from parts (a) through (g). 2. Compute the ending balance of the Work-in-process inventory account. 3. Compute the overhead variance and indicate whether it is overapplied or underapplied. 4. Close the overhead variance to the Cost of goods sold account. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the ending balance of the Work-in-process inventory account. Direct materials Direct labor Factory overhead applied Total ending balance < Required 1 Required 3> Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the overhead variance and indicate whether it is overapplied or underapplied. Actual factory overhead Indirect materials Indirect labor Utilities Depreciation Insurance < Prev 4 of 7 Next > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Close the overhead variance to the Cost of goods sold account. (If no entry is required for a transaction/eve journal entry required" in the first account field.) No Transaction General Journal Debit Credit < Required 3 Required 4 >