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Problem 15-4A (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.

Purchased raw materials on credit, $220,000.

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

Job 136	$ 48,500
Job 137	34,000
Job 138	20,000
Job 139	23,400
Job 140	7,200
Total direct materials	133,100
Indirect materials	21,000
Total materials requisitions	$ 154,100

Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$ 12,200
Job 137	10,700
Job 138	37,500
Job 139	39,400
Job 140	3,200
Total direct labor	103,000
Indirect labor	24,000
Total labor cost	$ 127,000

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 $525,000.

Recorded the cost of goods sold for Jobs 136 and 138.

Incurred the following actual other overhead costs during the month.

Depreciation of factory building	$ 69,000
Depreciation of factory equipment	38,000
Expired factory insurance	10,000
Accrued property taxes payable	35,500

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 15-4A (Algo) Part 2

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

a. Record raw material purchases on credit.

b1. Record the requisition of direct materials.

b2. Record the indirect materials.

c1. Record the entry for direct labor, paid in cash.

c2. Record the entry for indirect labor, paid in cash.

d. Record the entry to apply overhead to jobs 136, 138 and 139.

e. Record the transfer of completed jobs 136, 138 and 139 to finished goods.

f. Record the entry for sales on account for Jobs 136 and 138.

g. Record the entry for the cost of jobs 136 and 138.

h. Record the entry for the actual overhead costs incurred.

i. Record the entry to apply overhead to Jobs 137 and 140 (Work in Process).