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, $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 $ 49,500 33,5ee 20,000 23,eee 7,000 133, eee 21,000 $154, eee c. Paid $15,500 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,eee 10,600 38,100 39,400 4, eee 184,100 25,000 $129, 100 e. Applied overhead to Jobs 136, 138, and 139. he 126 128 and 129 to Finished Goods c. Paid $15,500 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,eee 10,6ee 38,100 39,400 4, eee 104,100 25, eee $129, 100 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 $545,000. 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, eee 38,000 12,000 36,000 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. 2. Prepare journal entries to record the events and transactions a through / No Transaction General Journal Credit Debit 220,000 Raw materials inventory Accounts payable 220,000 1 2 b. Work in process inventory Factory overhead Raw materials inventory 133,000 21,000 154,000 15,500 Factory overhead Cash 15,500 Work in process inventory Factory overhead Cash 104,100 25,000 129,100 179.000 Work in process inventory Factory overhead 179,000 6 f. Finished goods inventory Work in process inventory 7 0(1). Accounts receivable 545,000 Sales 545,000 1 8 (2). Cost of goods sold Required information YUV Cash 15,500 Work in process inventory Factory overhead Cash 104,100 25,000 e. 179.0001 Work in process inventory Factory overhead 179,000 Finished goods inventory Work in process inventory 545,000 Accounts receivable Sales 545,000 9(2). Cost of goods sold Finished goods inventory 155,000 69,000 38,000 Factory overhead Accum. depreciation Factory building Accumdepreciation Factory equipment Prepaid insurance Property taxes payable 12,000 36,000 29,200 Work in process inventory Factory overhead 29,200
