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, $240,000. b. Materials requisitions record use of the following materials for the month. $ 50,000 32,000 19,800 22,600 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions 7,200 131,600 21,500 $ 153, 100 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 12,300 10,600 37,500 39,400 3,200 103,000 26,000 $ 129,000 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 $540,000. g. Recorded the cost of goods sold for Jobs 136 and 138. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions $ 50,000 32,000 19,800 22,600 7,200 131,600 21,500 $ 153, 100 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 12,300 10,600 37,500 39,400 3,200 103,000 26,000 $ 129,000 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 $540,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. $ 69,000 Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable 38,500 11,000 35,500 i. 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. Saveu 1. Applied overeau al monin-end to me Work In Process inventory account (IOI JOD 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. F4 View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 > Record raw material purchases on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit a. 240,000 Raw materials inventory Accounts payable 240,000 Record entry Clear entry View general journal PILULILITICU Uverticuu TULL VI LUUMU UI UICELIULUI LUL. B 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 of 4 Ending balance 0 Ending balance Factory Overhead Finished Goods Inventory Ending balance 0 Ending balance 0 Cost of Goods Sold Ending balance 0 4. (a) Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. (b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods Inventory balance. (c) Compute the total cost of each job sold, and prove that the sum of their costs equals the Cost of Goods Sold balance. Total Job Costs (a) Work in Process Inventory Balance (b) Finished Goods Inventory Balance (C) Cost of Goods Sold Balance
