Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 (The following information applies to the questions displayed below) Widmer Watercraft's predetermined overhead rate for the year 2017 is 200% of direct labor Information on the company's production activities during May 2017 follows. a. Purchased raw materials on credit, $240,000 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 $ 49,000 33,000 19,800 22,600 6,600 131,000 20,000 $151,000 c. Paid $15,750 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 $ 12,200 10,600 37,900 39,000 3,600 1 03,300 26.509 $129,800 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 $530,000 h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory Insurance) Depreciation of factory building $70,000 Depreciation of factory equipment 38,000 Expired factory insurance 10,000 Accrued property taxes payable 36,000 i. 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. Problem 15-3A Part 1 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 Problem 15-3A Part 2 2. Prepare journal entries to record the events and transactions a through View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 10 Record raw material purchases on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Problem 15-3A Part 3 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 End.ba End bal Factory Overhead Finished Goods Inventory End bal End bal Cost of Goods Sold End bal 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. Problem 15-3A Part 4 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 Report of Job Costs Work in Process Inventory Finished Goods Inventory Balance Cost of Goods Sold
