Required information [The following information applies to the questions displayed below.] Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $260,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions $ 49,000 34,000 19,400 22,800 7,000 132,200 21,500 $ 153,700 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 $ 12,000 10,800 38,100 Job 139 Job 140 39,000 3,200 Total direct labor Indirect labor 103,100 26,500 Total labor cost $ 129,600 d. Applied overhead to Jobs 136, 138, and 139. e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory. f. Sold Jobs 136 and 138 on credit at a total price of $550,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 69,000 37,000 11,000 36,000 1. 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. 2. Prepare journal entries to record the events and transactions a through I. Answer is not complete. No 1 Transaction a. 2 b(1). Raw materials inventory Accounts payable Work in process inventory General Journal Debit 260,000 Credit 260,000 13,200 x Factory overhead 21,500 x Raw materials inventory 153,700x 3 b(2) Work in process inventory 103,100 Factory overhead Cash 26,500 x 129,600 B d. 7 e. 8 f. Work in process inventory Factory overhead Finished goods inventory Work in process inventory Accounts receivable Sales 178,200 178,200 358,500 358,500 550,000 550,000 9 g. Factory overhead 153,000 Accumulated depreciation-Factory building 69,000 Accumulated depreciation-Factory equipment 37,000 Prepaid insurance 11,000 Property taxes payable + 38,000 10 h. Work in process inventory 26,400 x Factory overhead 28,400