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

Purchased raw materials on credit, $200,000.

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

Job 136	$ 48,500
Job 137	34,000
Job 138	19,400
Job 139	23,000
Job 140	7,000
Total direct materials	131,900
Indirect materials	21,000
Total materials requisitions	$ 152,900

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

Job 136	$ 12,300
Job 137	10,600
Job 138	37,900
Job 139	39,400
Job 140	3,800
Total direct labor	104,000
Indirect labor	25,000
Total labor cost	$ 129,000

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 $550,000.

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	$ 69,000
Depreciation of factory equipment	37,000
Expired factory insurance	11,000
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.

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

Required information [The following information applies to the questions displayed below.] 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, $200,000. b. Materials requisitions record use of the following materials for the month. c. Time tickets record use of the following labor for the month. These wages were paid in cash. d. Applied overhead to Jobs 136,138 , and 139 . e. Transferred Jobs 136,138 , and 139 to Finished Goods Inventory. f. Sold Jobs 136 and 138 on credit at a total price of $550,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. i. 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. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance. Journal entry worksheet 3 4 Note: Enter debits before credits. Journal entry worksheet 5 Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the entry for direct labor, paid in cash. Note: Enter debits before credits. Journal entry worksheet Record the entry for indirect labor, paid in cash. Note: Enter debits before credits. Journal entry worksheet 1 2 3 Record the entry to apply overhead to jobs 136,138 and 139. Note: Enter debits before credits. Journal entry worksheet 1 2 5 8 Record the transfer of completed jobs 136, 138 and 139 to finished goods. Note: Enter debits before credits. Journal entry worksheet 5 Record the entry for sales on account for Jobs 136 and 138. Note: Enter debits before credits. Journal entry worksheet (1) .4 5 6 Record the entry for the cost of jobs 136 and 138. Note: Enter debits before credits. Journal entry worksheet 1 6 (7) 8 Record the entry for the actual overhead costs incurred. Note: Enter debits before credits. Journal entry worksheet Record the entry to apply overhead to Jobs 137 and 140 (Work in Process). Note: Enter debits before credits