Problem 19 3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 Widmer Watercrafts predetermined overhead rate is 200 of direct labor Information on the companys production activities during May follows a Purchased raw materials on credit, $220,000 b Materials requisitions record the use of the following materials for the month Job 136 $ 48,000 Job 137 33,000 Job 138 20,200 Job 139 23,200 Job 140 7,000 Total direct materials 131,400 Indirect materials 20,000 Total materials used $ 151,400 c Paid $15,750 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 $ 12,200 Job 137 10,600 Job 138 37,500 Job 139 39,200 Job 140 3,800 Total direct labor 103,300 Indirect labor 26,000 Total $ 129,300 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 $545,000 h The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance) Depreciation of factory building $ 68,000 Depreciation of factory equipment 37,500 Expired factory insurance 12,000 Accrued property taxes payable 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 Problem 19 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 19 3A Part 2 2 Prepare journal entries to record the events and transactions a through i Problem 19 3A Part 3 3 Post the journal entries for the transactions to the following T accounts, each of which started the month with a zero balance Problem 19 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 Job 137 Job 140 0 Balance 0 Finished Goods Inventory Job 139 0 Balance 0 Cost of Goods Sold Job 136 Job 138 0 Balance $0

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Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 Widmer Watercrafts predetermined overhead rate is 200% of direct

Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 Widmer Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.

a. Purchased raw materials on credit, $220,000.

b. Materials requisitions record the use of the following materials for the month.


Job 136	$	48,000
Job 137		33,000
Job 138		20,200
Job 139		23,200
Job 140		7,000
Total direct materials		131,400
Indirect materials		20,000
Total materials used	$	151,400

c. Paid $15,750 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	$	12,200
Job 137		10,600
Job 138		37,500
Job 139		39,200
Job 140		3,800
Total direct labor		103,300
Indirect labor		26,000
Total	$	129,300

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 $545,000.

h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).


Depreciation of factory building	$	68,000
Depreciation of factory equipment		37,500
Expired factory insurance		12,000
Accrued property taxes payable		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.

Problem 19-3A 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 19-3A Part 2

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

Problem 19-3A Part 3

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Problem 19-3A 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.