Problem 15 3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 The following information applies to the questions displayed below Widmer Watercrafts predetermined overhead rate is 200 of direct labor Information on the companys production activities during May follows Purchased raw materials on credit, $220,000 Materials requisitions record use of the following materials for the month Job 136 $ 49,500 Job 137 33,000 Job 138 19,800 Job 139 22,600 Job 140 6,600 Total direct materials 131,500 Indirect materials 20,000 Total materials used $ 151,500 Paid $15,250 cash to a computer consultant to reprogram factory equipment Time tickets record use of the following labor for the month These wages were paid in cash Job 136 $ 12,100 Job 137 10,600 Job 138 37,900 Job 139 39,000 Job 140 4,000 Total direct labor 103,600 Indirect labor 24,000 Total $ 127,600 Applied overhead to Jobs 136, 138, and 139 Transferred Jobs 136, 138, and 139 to Finished Goods Sold Jobs 136 and 138 on credit at a total price of $530,000 The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance) Depreciation of factory building $ 69,000 Depreciation of factory equipment 37,500 Expired factory insurance 11,000 Accrued property taxes payable 36,500 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 Prepare journal entries to record the events and transactions a through i 1 Record raw material purchases on credit 2 Record the requisition of direct and indirect materials 3 Record payment to computer consultant to reprogram factory equipment 4 Record the entry for direct and indirect labor, paid in cash 5 Record the entry to apply overhead to jobs 136, 138 and 139 6 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 138 8 Record the entry for the cost of sales of Jobs 136 and 138 9 Record other factory overhead (depreciation, insurance and property taxes) 10 Record the entry to apply overhead to Jobs 137 and 140 (Work in Process) Problem 15 3A Part 1 Required 1 Prepare a job cost sheet for each job worked on during the month Job No 136 Job No 137 Job No 138 Job No 139 Job No 140 Materials Labor Overhead Total cost $ 0 $ 0 $ 0 $ 0 $ 0 3 Post the journal entries for the transactions to the following T accounts, each of which started the month with a zero bali Raw Materials Inventory Work in Process Inventory End bal 0 End bal 0 Factory Overhead Finished Goods Inventory End bal 0 End bal 0 Cost of Goods Sold End bal 0 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 Balance 0 Finished Goods Inventory Balance 0 Cost of Goods Sold Balance $ 0

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Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 [The following information applies to the questions displayed below.]

Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

[The following information applies to the questions displayed below.] Widmer Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.

Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials for the month.


Job 136	$	49,500
Job 137		33,000
Job 138		19,800
Job 139		22,600
Job 140		6,600
Total direct materials		131,500
Indirect materials		20,000
Total materials used	$	151,500

Paid $15,250 cash to a computer consultant to reprogram factory equipment.
Time tickets record use of the following labor for the month. These wages were paid in cash.


Job 136	$	12,100
Job 137		10,600
Job 138		37,900
Job 139		39,000
Job 140		4,000
Total direct labor		103,600
Indirect labor		24,000
Total	$	127,600

Applied overhead to Jobs 136, 138, and 139.
Transferred Jobs 136, 138, and 139 to Finished Goods.
Sold Jobs 136 and 138 on credit at a total price of $530,000.
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).


Depreciation of factory building	$	69,000
Depreciation of factory equipment		37,500
Expired factory insurance		11,000
Accrued property taxes payable		36,500

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
Prepare journal entries to record the events and transactions a through i
1

Record raw material purchases on credit.
2

Record the requisition of direct and indirect materials.
3

Record payment to computer consultant to reprogram factory equipment.
4

Record the entry for direct and indirect labor, paid in cash.
5

Record the entry to apply overhead to jobs 136, 138 and 139.
6

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 138.
8

Record the entry for the cost of sales of Jobs 136 and 138.
9

Record other factory overhead (depreciation, insurance and property taxes).
10

Record the entry to apply overhead to Jobs 137 and 140 (Work in Process).

Problem 15-3A Part 1 Required: 1. Prepare a job cost sheet for each job worked on during the month. Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials Labor Overhead Total cost $ 0 $ 0 $ 0 $ 0 $ 0 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero bali Raw Materials Inventory Work in Process Inventory End.bal. 0 End.bal. 0 Factory Overhead Finished Goods Inventory End.bal. 0 End.bal. 0 Cost of Goods Sold End.bal. 0 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 Balance 0 Finished Goods Inventory Balance 0 Cost of Goods Sold Balance $ 0