accounting
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. a. Purchased raw materials on credit, $260,000. b. Materials requisitions record use of the following materials for the month. Job 136 $ 49,500 Job 137 32,500 Job 138 19,400 Job 139 23,000 Job 140 7,000 Total direct materials 131,400 Indirect materials 19,500 Total materials $150,900 used c. Paid $15,750 cash to a computer consultant to reprogram factory equipment. d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12,300 10,700 37,700 39,600 3,200 103,500 26,000 $129,500 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $550,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory $68,500 building Depreciation of factory 37,000 equipment Expired factory insurance 12,000 Accrued property taxes 36,000 payable i. 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. Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through i. Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through i. View transaction list View journal entry worksheet X Debit Credit Record raw material purchases on credit. Record the requisition of direct and indirect materials. 3 Record payment to computer consultant to reprogram factory equipment. 4 Record the entry for direct and indirect labor, paid in cash. 5 Record the entry to apply overhead to jobs 136, 138 and 139. 6 Record the transfer of completed jobs Note : = journal entry has been entered 9 h. No Transaction Recorded 10 i. No Transaction Recorded Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through i. View transaction list View journal entry worksheet X Debit Credit 6 Record the transfer of completed jobs 136,138 and 139 to finished goods. Record the entry for sales on account for Jobs 136 and 138. 8 Record the entry for the cost of sales of Jobs 136 and 138. 9 Record other factory overhead (depreciation, insurance and property taxes). Record the entry to apply overhead to Jobs 137 and 140 (Work in Process). Note : = journal entry has been entered 9 h. No Transaction Recorded 10 i. No Transaction Recorded
