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	$	49,000
Job 137		34,000
Job 138		20,000
Job 139		23,000
Job 140		7,200
Total direct materials		133,200
Indirect materials		20,500
Total materials used	$	153,700

c.	Paid $15,250 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		10,500
Job 138		38,100
Job 139		39,200
Job 140		3,000
Total direct labor		103,100
Indirect labor		26,000
Total	$	129,100

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		38,000
Expired factory insurance		10,000
Accrued property taxes payable		36,500

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.

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

Transaction	General Journal	Debit	Credit
a.	Raw materials inventory	240,000
	Accounts payable		240,000
b.	Factory overhead
	Work in process inventory
c.	Factory overhead	15,250
	Cash		15,250
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