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Please show calculations on how you obtained the answers for support. 18 Required information [The following information applies to the questions displayed below.) Part 1
Please show calculations on how you obtained the answers for support.
18 Required information [The following information applies to the questions displayed below.) Part 1 of 4 0.47 points 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, $220,000. b. Materials requisitions record use of the following materials for the month. eBook Print References $ 50,000 33,000 20,200 23,000 6,800 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used 133,000 20,500 $153,500 c. Paid $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 $ 12,100 10,600 38,100 39,400 3,200 103,400 26,500 $129,900 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 $535,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). $69,000 Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable 37,500 12,000 36,000 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. Required: 1. Prepare a job cost sheet for each job worked on during the month. Answer is complete and correct. Job No. Job No. 138 140 $ $ $ $ $ Materials Labor Overhead Total cost Job No. 136 50,000 12,100 24,200 86,300 Job No. 137 33,000 10,600 21,200 64,800 20,200 38,100 76,200 134,500 Job No. 139 23,000 39,400 78,800 141,200 6,800 3,200 6,400 16,400 $ $ $ $ $ Answer is not complete. No Transaction General Journal Debit Credit Raw materials inventory Accounts payable Work in process inventory Factory overhead Factory overhead Cash Work in process inventory Factory overhead Work in process inventory Factory overhead Finished goods inventory Work in process inventory g(1). Accounts receivable Sales g(2). Cost of goods sold Finished goods inventory 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 End.bal. L o End.bal. Factory Overhead Finished Goods Inventory End.bal. 0 End.bal. 0 Cost of Goods Sold End.bal. 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. Report of Job Costs Work in Process Inventory Job 137 Job 140 Balance Finished Goods Inventory Job 139 Balance Cost of Goods Sold Job 136 Job 138 BalanceStep by Step Solution
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