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.

c. Paid $15,750 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.

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 $550,000.

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

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.

Required: 1. Prepare a job cost sheet for each job worked on during the month.

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. 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.

Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials $ 49,500 33,500 19,800 23,000 7,200 133,000 21,000 $ 154,000 Total materials used Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor $ 12,000 10,600 37,700 39,400 3,400 103,100 24,500 $127,600 Total Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $68,500 37,500 12,000 36,000