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Problem 19-4A (Algo) Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P1, P2, P3 Skip to question [The following information applies to

Problem 19-4A (Algo) Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P1, P2, P3

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[The following information applies to the questions displayed below.]

Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.

  1. Purchased raw materials on credit, $260,000.
  2. Materials requisitions record use of the following materials for the month.

    Job 136 $ 49,000
    Job 137 32,500
    Job 138 19,200
    Job 139 22,800
    Job 140 7,000
    Total direct materials 130,500
    Indirect materials 20,500
    Total materials requisitions $ 151,000
  3. Time tickets record use of the following labor for the month. These wages were paid in cash.

    Job 136 $ 12,000
    Job 137 10,600
    Job 138 37,500
    Job 139 39,400
    Job 140 3,600
    Total direct labor 103,100
    Indirect labor 25,500
    Total labor cost $ 128,600
  4. Applied overhead to Jobs 136, 138, and 139.
  5. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
  6. Sold Jobs 136 and 138 on credit at a total price of $535,000.
  7. Recorded the cost of goods sold for Jobs 136 and 138.
  8. Incurred the following actual other overhead costs during the month.

    Depreciation of factory building $ 68,000
    Depreciation of factory equipment 38,500
    Expired factory insurance 11,000
    Accrued property taxes payable 36,000
  9. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Problem 19-4A (Algo) Part 1

Required:

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

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