Expired factory insurance Accrued property taxes payable 10,000 36,000 i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. 4. (a) Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. (b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods Inventory balance. (c) Compute the total cost of each job sold, and prove that the sum of their costs equals the Cost of Goods Sold balance. Total Job Costs (a) Work in Process Inventory Job 137 Job 140 Balance (b) Finished Goods Inventory Job 139 Balance (c) Cost of Goods Sold Job 136 Job 138 Balance 0 0 $ 0 ! Required information [The following information applies to the questions displayed below.] Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions $ 48,500 33,000 19,600 22,600 7,200 130,900 21,000 $ 151,900 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 $ 12,100 10,600 Job 138 Job 139 37,900 39,200 Job 140 Total direct labor Indirect labor 3,000 102,800 26,000 Total labor cost $ 128,800 d. Applied overhead to Jobs 136, 138, and 139. e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory. A COO 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance. Raw Materials Inventory Work in Process Inventory Ending balance 0 Ending balance Ending balance 0 Factory Overhead Finished Goods Inventory 0 Cost of Goods Sold Ending balance 0 Ending balance 0 d. Applied overhead to Jobs 136, 138, and 139. e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory. f. Sold Jobs 136 and 138 on credit at a total price of $545,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 69,000 37,000 10,000 36,000 i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 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. Raw Materials Inventory Work in Process Inventory Ending balance 0 Factory Overhead Ending balance 0 Finished Goods Inventory Ending balance Required information 5 c(2). Factory overhead Cash 26,000 26,000 6 d. Work in process inventory 179,600 Factory overhead 179,600 7 e. Finished goods inventory 359,500 Work in process inventory 359,500 8 f. Accounts receivable Sales 9 g. Cost of goods sold Finished goods inventory 10 h. Factory overhead Accumulated depreciation-Factory building Accumulated depreciation-Factory equipment Prepaid insurance Property taxes payable 11 i. Work in process inventory Factory overhead 545,000 545,000 218,500 218,500 152,000 69,000 37,000 10,000 36,000 27,200 27,200 2. Prepare journal entries to record the events and transactions a through i. View transaction list View journal entry worksheet No Transaction General Journal 1 a. Direct materials used Accounts payable 2 b(1). Work in process inventory Direct materials used Debit 220,000 Credit ......: 220,000 130,900 130,900 3 b(2). Factory overhead 21,000 Direct materials used 21,000 4 c(1). Work in process inventory 102,800 Cash 102,800 LO 5 c(2). Factory overhead Cash 26,000 26,000 6 d Work in process inventory 179 600