The following information applies to the questions displayed below.]

Widmer Watercrafts predetermined overhead rate for year 2013 is 200% of direct labor. Information on the companys production activities during May 2013 follows.

a.	Purchased raw materials on credit, $220,000.
b.	Paid $128,200 cash for factory wages.
c.	Paid $15,750 cash to a computer consultant to reprogram factory equipment.
d.	Materials requisitions record use of the following materials for the month.

Job 136	$	48,000
Job 137		32,500
Job 138		19,800
Job 139		23,400
Job 140		6,400
Total direct materials		130,100
Indirect materials		21,500
Total materials used	$	151,600

e.	Time tickets record use of the following labor for the month.

Job 136	$	12,000
Job 137		10,800
Job 138		37,700
Job 139		39,400
Job 140		3,800
Total direct labor		103,700
Indirect labor		24,500
Total	$	128,200

f.	Applied overhead to Jobs 136, 138, and 139.
g.	Transferred Jobs 136, 138, and 139 to Finished Goods.
h.	Sold Jobs 136 and 138 on credit at a total price of $525,000.
i.	The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	69,000
Depreciation of factory equipment		38,500
Expired factory insurance		11,000
Accrued property taxes payable		37,000

j.

Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Required:

1.

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

3.	Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these T-accounts and determine the balance of each account.

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

1.

Record raw material purchases on credit.

2.

Record factory payroll paid in cash.

3.

Record payment to computer consultant to reprogram factory equipment.

4.

Record the entry for direct and indirect materials.

5.

Record the entry for direct and indirect labor.

6.

Record the entry to apply overheads to jobs 136,138 and 139.

7.

Record the transfer of completed jobs 136,138 and 139 to finished goods.

8.

Record the entry for sales on account for Jobs 136 and 138.

9.

Record cost of sales.

10.

Record other factory overhead ( depreciation, insurance and property taxes).

11.

Record the entry to apply overheads to Jobs 137 and 140 (Goods in Process).

S00 points Problem 19-3A Part Problem 19-3A Part 2 record the events and tansadtonsa hrough material purchas Record factory pav paid in cash 3. Record paymere to computer consitant toreprogram factory for di Record the entry for di 6. Record the entry apply overheads to jobs 136.138 Record the tansfer of completed obs 125. 8. Record the entry for sales on acceurt for lots 136 and 9. Record cost of sales, al entry has been renton Finished Goods Sald Then pest the jumal amaks determine the brinnce enth End