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Problem 19-3A Source documents, journal entries, and accounts in job order cost accounting LO P1, P2, P3

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

Widmer Watercrafts predetermined overhead rate for year 2013 is 200% of direct labor. Information on the companys production activities during May 2013 follows.

a.	Purchased raw materials on credit, $200,000.
b.	Paid $129,300 cash for factory wages.
c.	Paid $15,500 cash to a computer consultant to reprogram factory equipment.
d.	Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		33,000
Job 138		19,400
Job 139		22,600
Job 140		7,000
Total direct materials		130,500
Indirect materials		21,000
Total materials used	$	151,500

e.	Time tickets record use of the following labor for the month.

Job 136	$	12,100
Job 137		10,600
Job 138		37,700
Job 139		39,400
Job 140		4,000
Total direct labor		103,800
Indirect labor		25,500
Total	$	129,300

f.	Applied overhead to Jobs 136, 138, and 139.
g.	Transferred Jobs 136, 138, and 139 to Finished Goods.
h.	Sold Jobs 136 and 138 on credit at a total price of $535,000.
i.	The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		37,000
Expired factory insurance		12,000
Accrued property taxes payable		36,000

j.	Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Problem 19-3A Part 2

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

3.	Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these T-accounts and determine the balance of each account.

4.	Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

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 $