Widmer Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $ 48,000 Job 137 32,500 Job 138 19,600 Job 139 23,000 Job 140 6,400 Total direct materials 129,500 Indirect materials 20,000 Total materials used $ 149,500 Paid $16,000 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,200 Job 137 10,700 Job 138 37,900 Job 139 39,600 Job 140 4,000 Total direct labor 104,400 Indirect labor 25,000 Total $ 129,400 Applied overhead to Jobs 136, 138, and 139. Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136 and 138 on credit at a total price of $525,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $ 68,500 Depreciation of factory equipment 37,500 Expired factory insurance 10,000 Accrued property taxes payable 35,000 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. 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.

Required information [The following information applies to the questions displayed below.) Widmer Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $240,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used $ 48,000 32,500 19,600 23,000 6,400 129,500 20,000 $149,500 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 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12,200 10,700 37,900 39,600 4,000 104,400 25,000 $129,400 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 $525,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory Insurance) Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $6B, 500 37,500 10,000 35,000 1. 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. 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 Report of Job Costs Work in Process Inventory Job 137 S Job 140 240,000 48,000 288,000 Balance Finished Goods Inventory Job 139 37,500 10,000 47,500 Balance Cost of Goods Sold Job 136 Job 138 35,000 30,090 Balance S 65,090