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

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

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

Job 136 $ 48,500

Job 137 33,000

Job 138 19,400

Job 139 23,400

Job 140 6,600

Total direct materials

130,900

Indirect materials 20,500

Total materials used $ 151,400

c. Paid $16,000 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 $ 12,300

Job 137 10,600

Job 138 37,700

Job 139 39,400

Job 140 3,400

Total direct labor 103,400

Indirect labor 25,000

Total $ 128,400

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 $540,000.

h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building $ 69,000

Depreciation of factory equipment 38,000

Expired factory insurance 11,000

Accrued property taxes payable 36,500

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.

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

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

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.