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this is a 4 part question. im not too sure how to go about it. thanks Widmer Watercraft's predetermined overhead rate is 200% of direct
this is a 4 part question. im not too sure how to go about it. thanks
Widmer 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. $220,000. b. Materials requisitions record use of the following materials for the month. es Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used $ 50,000 32,500 20,000 23,000 6,800 132,300 20,000 $152,300 c. Pald $15,000 cash to a computer consultant to reprogram factory equipment d. 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 $ 12,100 10,700 37.900 39,400 3,600 103,700 26,500 $130,200 e. Applied overhead to Jobs 136, 138, and 139, f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $535,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance) Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69.500 37.500 11,000 35,500 Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69.500 37,500 11,000 35,500 I. Applied overhead at month-end to the Work in Process Inventory account (Job 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. Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials Labor Overhead Total cost $ 0 $ 0 $ 0 $ 0 $ 0 Widmer 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, $220,000 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 used $ 50,000 32,500 20,000 23,000 6.800 132,300 20.000 $152,300 C. Paid $15,000 cash to a computer consultant to reprogram factory equipment. d. 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 $ 12, 100 10.700 37,900 39,400 3,600 103, 700 26,500 $130,200 e. Applied overhead to Jobs 136, 138, and 139, f. Transferred Jobs 136, 138, and 139 to Finished Goods, g. Sold Jobs 136 and 138 on credit at a total price of $535,000. Required information e. Applied overhead to Jobs 136, 138, and 139 f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $535,000 h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance) Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69,500 37,500 11,000 35,500 1. 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. Required information 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance. of 4 Raw Materials Inventory Work in Process Inventory End bal OOK End.bal Factory Overhead Finished Goods Inventory rences End.bal End bal Cost of Goods Sold End bal 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work In Process Inventory account balance. Prepare similar reports for Finished Goods inventory and cost of Goods Sold Wonin Procesory Fished Goods intory Balance Coat of Goods Sold Balance Step by Step Solution
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