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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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Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.
- Purchased raw materials on credit, $260,000.
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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 -
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 - Applied overhead to Jobs 136, 138, and 139.
- Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
- Sold Jobs 136 and 138 on credit at a total price of $535,000.
- Recorded the cost of goods sold for Jobs 136 and 138.
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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 - 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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