Problem 15-3A Computing and recording job costs; preparing income statement and balance sheet P1 P2 P3 P4 payroll (Factory Wages Payable) has not been recorded. page 607 These six documents must be processed to bring the accounting records up to date. Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 200% of direct labor cost. Required 1. Use the document information above to prepare journal entries for the following costs. a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $271,000 in this list. 4. Prepare an income statement for the year and a balance sheet as of December 31 . Hint: Retained earnings is $356,800 at the end of the current year. Check (4) Total assets, $516,800 Preparing job cost sheets, recording costs, preparing inventory ledger accounts P1 P2 P3 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, $200,000. b. Materials requisitions record use of the following materials for the month. c. Time tickets record use of the following labor for the month. These wages were paid in cash. 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 $525,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and Job 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. Use the following simplified form. 2. Prepare journal entries to record the events and transactions a through i. accounts and determine the ending balance of each account. 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. Check (2d) Cr. Factory Overhead, $177,000 (4) Finished Goods Inventorv. $139.400