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 Watercraft's predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company's production activities during May 2015 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 $ 49,500 32,500 20,200 22,800 7,200 Total direct materials Indirect materials 132,200 21,500 Total materials used $153,700 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 $ 12,000 10,500 38,100 39,400 3,400 Total direct labor Indirect labor 103.400 26.000 Total $129,400 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). Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69,500 37,500 12,000 35,000 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. 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 Problem 15-3A Part 2 2. Prepare journal entries to record the events and transactions a through i. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record raw material purchases on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general Journal 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 3 3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts Raw Materials Inventory Work in Process Inventory End.bal. 0 End.bal. Factory Overhead Finished Goods Inventory End.bal. 0 End.bal. 0 Cost of Goods Sold End.bal. 0 Problem 15-3A Part 4 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 0 Balance Cost of Goods Sold Balance $ 0