Required information Problem 2 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 Watercrafts predetermined overhead rate for the year 2017 is 200 of direct labor Information on the companys production activities during May 2017 follows Purchased raw materials on credit, $240,000 Materials requisitions record use of the following materials for the month Job 136 $ 50,000 Job 137 33,500 Job 138 19,800 Job 139 23,000 Job 140 7,400 Total direct materials 133,700 Indirect materials 21,000 Total materials used $ 154,700 Paid $15,000 cash to a computer consultant to reprogram factory equipment Time tickets record use of the following labor for the month These wages were paid in cash Job 136 $ 12,200 Job 137 10,500 Job 138 37,900 Job 139 39,200 Job 140 3,400 Total direct labor 103,200 Indirect labor 26,500 Total $ 129,700 Applied overhead to Jobs 136, 138, and 139 Transferred Jobs 136, 138, and 139 to Finished Goods Sold Jobs 136 and 138 on credit at a total price of $535,000 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 37,500 Expired factory insurance 11,000 Accrued property taxes payable 36,500 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 Problem 2 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 $ 0 Problem 2 3A Part 2 2 Prepare journal entries to record the events and transactions a through i View transaction list Journal entry worksheet 3 4 5 6 7 8 9 10 Record raw material purchases on credit Note Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Problem 2 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 Raw Materials Inventory Work in Process Inventory End bal End bal Factory Overhead Finished Goods Inventory End bal L o End bal Cost of Goods Sold End bal Problem 2 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

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Required information Problem 2-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 [The following information applies to the questions

Required information

Problem 2-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

[The following information applies to the questions displayed below.] Widmer Watercrafts predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the companys production activities during May 2017 follows.

Purchased raw materials on credit, $240,000.
Materials requisitions record use of the following materials for the month.


Job 136	$	50,000
Job 137		33,500
Job 138		19,800
Job 139		23,000
Job 140		7,400
Total direct materials		133,700
Indirect materials		21,000
Total materials used	$	154,700

Paid $15,000 cash to a computer consultant to reprogram factory equipment.
Time tickets record use of the following labor for the month. These wages were paid in cash.


Job 136	$	12,200
Job 137		10,500
Job 138		37,900
Job 139		39,200
Job 140		3,400
Total direct labor		103,200
Indirect labor		26,500
Total	$	129,700

Applied overhead to Jobs 136, 138, and 139.
Transferred Jobs 136, 138, and 139 to Finished Goods.
Sold Jobs 136 and 138 on credit at a total price of $535,000.
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		37,500
Expired factory insurance		11,000
Accrued property taxes payable		36,500

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.

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Problem 2-3A 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 $ 0 Problem 2-3A Part 2 2. Prepare journal entries to record the events and transactions a through i. View transaction list Journal entry worksheet 3 4 5 6 7 8 9 10 Record raw material purchases on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Problem 2-3A 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. Raw Materials Inventory Work in Process Inventory End.bal. End.bal. Factory Overhead Finished Goods Inventory End.bal. L o End.bal. Cost of Goods Sold End.bal. Problem 2-3A 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