Widmer Watercrafts predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the companys production activities during May 2017 follows.

1. Purchased raw materials on credit, $260,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$48,000
Job 137	32,500
Job 138	20,000
Job 139	22,600
Job 140	6,800
Total direct materials	129,900
Indirect materials	21,500
Total materials used	$151,400

3. Paid $15,250 cash to a computer consultant to reprogram factory equipment.
4. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$12,000
Job 137	10,500
Job 138	37,900
Job 139	39,400
Job 140	3,200
Total direct labor	103,000
Indirect labor	26,500
Total	$129,500

5. Applied overhead to Jobs 136, 138, and 139.
6. Transferred Jobs 136, 138, and 139 to Finished Goods.
7. Sold Jobs 136 and 138 on credit at a total price of $540,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$68,500
Depreciation of factory equipment	38,500
Expired factory insurance	12,000
Accrued property taxes payable	35,500

9. 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.

rev: 02_01_2017_QC_CS-77139

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 Job 137 Job 140 Balance Finished Goods Inventory Job 139 Balance Cost of Goods Sold Job 136 Job 138 Balance