Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.] Widmer Watercrafts predetermined overhead rate for the year 2017 is 200% of direct labor.
Required information
[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 | $ | 48,500 | |
Job 137 | 33,500 | ||
Job 138 | 19,600 | ||
Job 139 | 22,800 | ||
Job 140 | 6,600 | ||
Total direct materials | 131,000 | ||
Indirect materials | 21,000 | ||
Total materials used | $ | 152,000 | |
- Paid $15,250 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 | $ | 12,100 | |
Job 137 | 10,600 | ||
Job 138 | 38,100 | ||
Job 139 | 39,000 | ||
Job 140 | 3,400 | ||
Total direct labor | 103,200 | ||
Indirect labor | 26,000 | ||
Total | $ | 129,200 | |
- 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 $545,000.
- 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 | 37,000 | ||
Expired factory insurance | 12,000 | ||
Accrued property taxes payable | 37,000 | ||
- 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.
rev: 08_17_2017_QC_CS-95840
Required: 1. Prepare a job cost sheet for each job worked on during the month.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started