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, $200,000.

b. Materials requisitions record use of the following materials for the month.

Job 136 $48,000

Job 137 32,000

Job 138 19,200

Job 139 22,400

Job 140 6,400

Total direct materials 128,000

Indirect materials 19,500

Total materials used 147,500

c. Paid $15,000 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 $12,000

Job 137 10,500

Job 138 37,500

Job 139 39,000

Job 140 3,000

Total direct labor 102,000

Indirect labor 24,000

Total 126,000

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: 68,000

Depreciation of factory equipment: 36,500

Expired factory insurance: 10,000

Accrued property taxes payable: 35,000

i. Applied overhead at month-end to the WIP inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

1. Prepare job cost sheet for each job worked on during the month. Use the following simplified form.

Job No. _______

Materials $_______

Labor _______

Overhead _______

Total cost $_______

1. Prepare journal entries to record the events and transactions a through i.
2. Set up T-accounts for each of the following general ledger accounts, each of which started the month with zero balance: Raw materials inventory, WIP inventory, finished goods inventory, factory overhead, cost of goods sold. Then post the journal entries to these T-accounts and determine the balance of each account.
3. Prepare report showing the total cost of each job in process and prove that the sum of their costs equals the WIP inventory account balance. Prepare similar reports for finished goods inventory and cost of goods sold.