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

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

Purchased raw materials on credit, $240,000.

Materials requisitions record use of the following materials for the month.

Job 136	$ 49,500
Job 137	33,000
Job 138	20,000
Job 139	22,600
Job 140	7,000
Total direct materials	132,100
Indirect materials	20,000
Total materials requisitions	$ 152,100

Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$ 12,200
Job 137	10,800
Job 138	37,700
Job 139	39,000
Job 140	3,200
Total direct labor	102,900
Indirect labor	26,000
Total labor cost	$ 128,900

Applied overhead to Jobs 136, 138, and 139.

Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.

Sold Jobs 136 and 138 on credit at a total price of $530,000.

Recorded the cost of goods sold for Jobs 136 and 138.

Incurred the following actual other overhead costs during the month.

Depreciation of factory building	$ 69,500
Depreciation of factory equipment	37,500
Expired factory insurance	10,000
Accrued property taxes payable	35,000

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.

1. Prepare a job cost sheet for each job worked on during the month.

	Job Number 136	Job Number 137	Job Number 138	Job Number 139	Job Number 140
Materials
Labor
Overhead
Total cost	$0	$0	$0	$0	$0

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

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

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.