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Record raw material purchases on credit.
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Record the requisition of direct and indirect materials.
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Record payment to computer consultant to reprogram factory equipment.
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Record the entry for direct and indirect labor, paid in cash.
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Record the entry to apply overhead to jobs 136, 138 and 139.
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Record the transfer of completed jobs 136,138 and 139 to finished goods.
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Record the entry for sales on account for Jobs 136 and 138.
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Record the entry for the cost of sales of Jobs 136 and 138.
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Record other factory overhead (depreciation, insurance and property taxes).
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Record the entry to apply overhead to Jobs 137 and 140 (Work in Process).
Problem 19-3A 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 the year 2017 is 200% of direct labor. Information on the company's production activities during May 2017 follows. credit, $220,000. b. Materials requisitions record use of the following materials for the month a. Purchased raw materials on Job 136 49,000 Job 137 33,500 19,600 Job 138 Job 139 22,400 6,400 130,900 Job 140 Total direct materials Indirect materials 19,500 $ 150,400 Total materials used 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 10,600 Job 137 Job 138 37,500 39,200 3,600 103,100 Job 139 Job 140 Total direct labor 26,000 $ 129,100 Indirect labor Total 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 $530,000. 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 S 70,000 37,000 11,000 35,500 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 to 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 C Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through 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. Work in Process Inventory Raw Materials Inventory End.bal End.bal Finished Goods Inventory Factory Overhead End.bal 0 End.bal 0 Cost of Goods Sold End.bal 0 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 Balance Finished Goods Inventory Balance Cost of Goods Sold Balance $ 0
