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Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 Skip to question [The following information applies to the

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

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[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.

  1. Purchased raw materials on credit, $240,000.
  2. Materials requisitions record use of the following materials for the month.

Job 136 $ 48,500
Job 137 33,500
Job 138 19,800
Job 139 23,200
Job 140 6,400
Total direct materials

131,400

Indirect materials 21,000
Total materials used $ 152,400

  1. Paid $15,000 cash to a computer consultant to reprogram factory equipment.
  2. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136 $ 12,000
Job 137 10,500
Job 138 37,900
Job 139 39,200
Job 140 3,800
Total direct labor 103,400
Indirect labor 25,000
Total $ 128,400

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

Depreciation of factory building $ 69,500
Depreciation of factory equipment 37,500
Expired factory insurance 11,000
Accrued property taxes payable 35,000

  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.

Problem 15-3A Part 1

Required: 1. Prepare a job cost sheet for each job worked on during the month.

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