Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I really need help with this. it has 4 parts. the last picture has my answers as well but not sure if they are right
I really need help with this. it has 4 parts. the last picture has my answers as well but not sure if they are right
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 33,500 19,400 22,800 6,600 130,800 21,000 $ 151,800 c. 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 labor cost $ 12,000 10,700 37,900 39,400 3,000 103,000 24, see $ 127,500 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 $ 70,000 Depreciation of factory equipment 37,000 Expired factory insurance Accrued property taxes payable 37,000 11,000 1. 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. 2. Prepare journal entries to record the events and transactions a through i. View transaction list Journal entry worksheet 1 2 3 5 6 7 8 ... 11 > Record raw material purchases on credit. 4 Note: Enter debits before credits. Transaction Credit General Journal Raw materials inventory Accounts payable Debit 220.000 a 220.000 Record entry Clear entry View general journal 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 d e . Ending balance Ending balance Factory Overhead Finished Goods Inventory (1) d e Ending balance Ending balance Cost of Goods Sold 0 Ending balance 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 (6) Work in Process Inventory Job 137 Job 140 0 Balance (b) Finished Goods Inventory Job 139 Balance (c) Cost of Goods Sold Sob 136 Job 138 0 Balance Required: 1. Prepare a job cost sheet for each job worked on during the month Materials Labor Overhead Job Number 136 Job Number 137 Job Number 138 Job Number 139 Job Number 140 $ 48.500 5 33,500 5 19,400 $ 22,800 $ 6,600 12,000 10.700 37 900 39,400 3,000 24,000 21,400 75,800 78,800 6,000 $ 84,500 5 65 600 5 133,100 $ 141.000 $ 15,600 Total cost 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