Everytime I think I understand I start off wrong and get beyond lost.

Widmer Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.

1. Purchased raw materials on credit, $200,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		33,500
Job 138		20,200
Job 139		23,200
Job 140		6,400
Total direct materials		131,800
Indirect materials		20,000
Total materials used	$	151,800

3. Paid $15,750 cash to a computer consultant to reprogram factory equipment.
4. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$	12,000
Job 137		10,600
Job 138		37,900
Job 139		39,000
Job 140		3,000
Total direct labor		102,500
Indirect labor		26,500
Total	$	129,000

5. Applied overhead to Jobs 136, 138, and 139.
6. Transferred Jobs 136, 138, and 139 to Finished Goods.
7. Sold Jobs 136 and 138 on credit at a total price of $535,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	69,000
Depreciation of factory equipment		37,000
Expired factory insurance		12,000
Accrued property taxes payable		36,000

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.

No	Transaction	General Journal	Debit	Credit
1	a.	Raw materials inventory	200,000
		Accounts payable		200,000
2	b.	Work in process inventory
		Factory overhead
		Raw materials inventory
3	c.	Factory overhead	15,750
		Cash		15,750
4	d.	Work in process inventory	102,500
		Factory overhead	26,500
		Cash		128,500
5	e.	Work in process inventory
		Factory overhead
6	f.	Finished goods inventory
		Work in process inventory
7	g(1).	Accounts receivable	60,500
		Sales		60,500
8	g(2).	Cost of goods sold
		Finished goods inventory
9	h.	Factory overhead
		Accum. depreciationFactory building
		Accum. depreciationFactory equipment
		Prepaid insurance
		Property taxes payable
10	i.	Work in process inventory
		Factory overhead