Widmer Watercrafts predetermined overhead rate for year 2015 is 200% of direct labor. Information on the companys production activities during May 2015 follows.

a.	Purchased raw materials on credit, $240,000.
b.	Materials requisitions record use of the following materials for the month.

Job 136

$

48,500

Job 137

33,500

Job 138

20,000

Job 139

22,800

Job 140

7,200

Total direct materials

132,000

Indirect materials

19,500

Total materials used

$

151,500

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	$	12,200
Job 137		10,600
Job 138		37,700
Job 139		39,200
Job 140		3,200
Total direct labor		102,900
Indirect labor		25,000
Total	$	127,900

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 $530,000.

h.

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

Depreciation of factory building	$	68,000
Depreciation of factory equipment		37,500
Expired factory insurance		10,000
Accrued property taxes payable		35,500

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.

1. Job 136 Job 137 Jpb 138 Job 139 Job 141

Materials

Labor

overhead

Total cost

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

Transaction	General Journal	Debit	Credit
a.	Raw materials inventory
	Accounts payable
b.	Factory overhead
	Work in process inventory
c.	Factory overhead
	Cash
d.	Work in process inventory
	Factory overhead
e.	Work in process inventory
	Factory overhead
f.	Finished goods inventory
	Work in process inventory
g(1).	No Transaction Recorded
g(2).	No Transaction Recorded
h.	Factory overhead
	Accum. depreciationFactory building
	Accum. depreciationFactory equipment
i.	Work in process inventory
	Factory overhead

3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts raw materials inventory work in process inventory factory overhead finished goods inventory cost of goods sold