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

1. Purchased raw materials on credit, $260,000.

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

Job 136	$ 49,500
Job 137	32,500
Job 138	20,000
Job 139	23,000
Job 140	6,600
Total direct materials	131,600
Indirect materials	19,500
Total materials requisitions	$ 151,100

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

Job 136	$ 12,000
Job 137	10,800
Job 138	37,500
Job 139	39,400
Job 140	3,400
Total direct labor	103,100
Indirect labor	24,500
Total labor cost	$ 127,600

1. Applied overhead to Jobs 136, 138, and 139.
2. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
3. Sold Jobs 136 and 138 on credit at a total price of $535,000.
4. 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	$ 70,000
Depreciation of factory equipment	38,000
Expired factory insurance	11,000
Accrued property taxes payable	36,000

1. 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.

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

4.

(a) Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance.

(b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods Inventory balance.

(c) Compute the total cost of each job sold, and prove that the sum of their costs equals the Cost of Goods Sold balance.