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 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used $ 48,000 32,000 19,200 22,400 6,400 128,000 19,500 $ 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 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12,000 10,500 37,500 39,000 3,000 102,000 24,000 $ 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 Page 601 for expired factory insurance). Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $68,000 36,500 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. 3 Job No. 136 Job No. 138 4 48000 12000 5 Material 6 Labor 7 Overhead 8 Total Cost Material Labor Overhead 24000 84000 Total Cost 0 9 Job No. 140 Material ....... ........ Labor ......... Overhead ..... Total Cost ..... 0 Job No. 137 Job No. 139 32000 Material Material Labor 10500 Labor Overhead Overhead Total Cost 21000 63500 Total Cost 0 9 10 Date Account Titles and Explanation P.R. Debit Credit 115 200,000 Material Inventory Accounts payable 200,000 11 12 13 14 15 16 17 18 1 2 3 Raw materials Inventory 4 Goods In Process Finished Goods Inventory Factory Payroll 5 6 7 8 9 10 11 12 13 14 Factory Overhead Cost of Goods Sold 15 16 17 18 19 20 O 21