Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with journal entries 6-10 Required information [The following Information applies to the questions displayed below] Widmer Watercraft's predetermined overhead rate is 200%
I need help with journal entries 6-10
Required information [The following Information applies to the questions displayed below] Widmer 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, $260,000. 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 used $ 49,500 33,5ee 19, 20e 22,600 7,080 131, Bee 19,560 $151,300 w c. Pald $15.250 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. Pald $15,250 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 $ 12,200 10, Bee 38,100 39,400 184, 1ee 26, see $130,600 e. Applied overhead to Jobs 136, 138, and 139. t Transferred Jobs 136, 138, and 139 to Finished Goods. 9. Sold Jobs 136 and 138 on credit at a total price of $540,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory Insurance) Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $68,500 37,000 11,000 36,000 1. 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 2 Prepare journal entries to record the events and transactions a through L. View transaction list View journal entry worksheet Debit Credit 280,000 280,000 Record the transfer of completed jobs 136,138 and 139 to finished goods. 7 Record the entry for sales on account for Jobs 136 and 131,800 19,500 151,300 138. 15,250 3 Record the entry for the cost of sales of Jobs 136 and 138. 15,250 Record other factory overhead (depreciation, insurance and property taxes). 28,500 104,100 130.000 10. Record the entry to apply overhead to Jobs 137 and 140 (Work in Process). 179,400 Note: 1 = journal entry has been entered 179.400 179.400 Finished goods inventory Work in process inventory Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started