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

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

Record raw material purchases on credit.

2.

Record the requisition of direct and indirect materials.

3.

Record payment to computer consultant to reprogram factory equipment.

4.

Record the entry for direct and indirect labor, paid in cash.

5.

Record the entry to apply overhead to jobs 136, 138 and 139.

6.

Record the transfer of completed jobs 136,138 and 139 to finished goods.

7.

Record the entry for sales on account for Jobs 136 and 138.

8.

Record the entry for the cost of sales of Jobs 136 and 138.

9.

Record other factory overhead (depreciation, insurance and property taxes).

10.

Record the entry to apply overhead to Jobs 137 and 140 (Work in Process).

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

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

Job 136	$	49,000
Job 137		34,000
Job 138		19,600
Job 139		23,000
Job 140		7,000
Total direct materials		132,600
Indirect materials		21,000
Total materials used	$	153,600

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.

Job 136	$	12,100
Job 137		10,600
Job 138		38,100
Job 139		39,200
Job 140		3,800
Total direct labor		103,800
Indirect labor		24,000
Total	$	127,800

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 $545,000.
h.	The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	69,500
Depreciation of factory equipment		38,500
Expired factory insurance		11,000
Accrued property taxes payable		37,000

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. 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.