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

Purchased raw materials on credit, $220,000.

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

Job 136	$	49,000
Job 137		32,000
Job 138		19,600
Job 139		22,600
Job 140		7,400
Total direct materials		130,600
Indirect materials		21,000
Total materials used	$	151,600

Paid $15,500 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		10,600
Job 138		38,100
Job 139		39,200
Job 140		3,200
Total direct labor		103,300
Indirect labor		26,000
Total	$	129,300

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 $540,000.

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		37,500
Expired factory insurance		12,000
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.

Required: 1. Prepare a job cost sheet for each job worked on during the month.

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

a) Record raw material purchases on credit.

b)Record the requisition of direct and indirect materials.

c)Record payment to computer consultant to reprogram factory equipment.

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

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

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

g)Record the entry for sales on account for jobs 136 and 138.

h)Record the entry for cost of sales for jobs 136 and 138.

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

j) Record the entry to apply overhead to jobs 137 and 140 (work in process).

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

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.