Required information
[The following information applies to the questionsdisplayed below.]
Widmer Watercraftâs predetermined overhead rate for the year 2017is 200% of direct labor. Information on the companyâs productionactivities during May 2017 follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials forthe month.
Job 136 $ 49,000 Job 137 33,500 Job 138 20,200 Job 139 22,800 Job 140 7,000 Total direct materials 132,500
Indirect materials 21,000 Total materials used $ 153,500
Paid $15,750 cash to a computer consultant to reprogram factoryequipment.
Time tickets record use of the following labor for the month.These wages were paid in cash.
Job 136 $ 12,100 Job 137 10,700 Job 138 37,900 Job 139 39,600 Job 140 3,200 Total direct labor 103,500 Indirect labor 25,500 Total $ 129,000
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$545,000.
The company incurred the following overhead costs during themonth (credit Prepaid Insurance for expired factory insurance).
Depreciation of factorybuilding $ 70,000 Depreciation of factoryequipment 38,000 Expired factory insurance 11,000 Accrued property taxespayable 35,500
Applied overhead at month-end to the Work in Process Inventoryaccount (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost.
2. Prepare journal entries to record the eventsand transactions a through i.
Record raw material purchases on credit.
Note: Enter debits before credits.
Transaction General Journal Debit Credit a.
Record the requisition of direct and indirect materials.
Note: Enter debits before credits.
Transaction General Journal Debit Credit b.
Record payment to computer consultant to reprogram factoryequipment.
Note: Enter debits before credits.
Transaction General Journal Debit Credit c.
Record the entry for direct and indirect labor, paid incash.
Note: Enter debits before credits.
Transaction General Journal Debit Credit d.
Record the entry to apply overhead to jobs 136, 138 and 139.
Note: Enter debits before credits.
Transaction General Journal Debit Credit e.
Record the transfer of completed jobs 136,138 and 139 tofinished goods.
Note: Enter debits before credits.
Transaction General Journal Debit Credit f.
Record the entry for sales on account for Jobs 136 and 138.
Note: Enter debits before credits.
Transaction General Journal Debit Credit g(1).
Record the entry for the cost of sales of Jobs 136 and 138.
Note: Enter debits before credits.
Transaction General Journal Debit Credit g(2).
Record other factory overhead (depreciation, insurance andproperty taxes).
Note: Enter debits before credits.
Transaction General Journal Debit Credit h.
Record the entry to apply overhead to Jobs 137 and 140 (Work inProcess).
Note: Enter debits before credits.
Transaction General Journal Debit Credit i.
Required information
[The following information applies to the questionsdisplayed below.]
Widmer Watercraftâs predetermined overhead rate for the year 2017is 200% of direct labor. Information on the companyâs productionactivities during May 2017 follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials forthe month.
| Job 136 | $ | 49,000 | |
| Job 137 | 33,500 | ||
| Job 138 | 20,200 | ||
| Job 139 | 22,800 | ||
| Job 140 | 7,000 | ||
| Total direct materials | 132,500 | ||
| Indirect materials | 21,000 | ||
| Total materials used | $ | 153,500 | |
Paid $15,750 cash to a computer consultant to reprogram factoryequipment.
Time tickets record use of the following labor for the month.These wages were paid in cash.
| Job 136 | $ | 12,100 | |
| Job 137 | 10,700 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,600 | ||
| Job 140 | 3,200 | ||
| Total direct labor | 103,500 | ||
| Indirect labor | 25,500 | ||
| Total | $ | 129,000 | |
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$545,000.
The company incurred the following overhead costs during themonth (credit Prepaid Insurance for expired factory insurance).
| Depreciation of factorybuilding | $ | 70,000 | |
| Depreciation of factoryequipment | 38,000 | ||
| Expired factory insurance | 11,000 | ||
| Accrued property taxespayable | 35,500 | ||
Applied overhead at month-end to the Work in Process Inventoryaccount (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost.
2. Prepare journal entries to record the eventsand transactions a through i.
Record raw material purchases on credit.
Note: Enter debits before credits.
|
Record the requisition of direct and indirect materials.
Note: Enter debits before credits.
Record payment to computer consultant to reprogram factoryequipment. Note: Enter debits before credits.
|
Related questions
Required information
[The following information applies to the questionsdisplayed below.]
Widmer Watercraftâs predetermined overhead rate for the year 2017is 200% of direct labor. Information on the companyâs productionactivities during May 2017 follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials forthe month.
| Job 136 | $ | 49,000 | |
| Job 137 | 33,500 | ||
| Job 138 | 20,200 | ||
| Job 139 | 22,800 | ||
| Job 140 | 7,000 | ||
| Total direct materials | 132,500 | ||
| Indirect materials | 21,000 | ||
| Total materials used | $ | 153,500 | |
Paid $15,750 cash to a computer consultant to reprogram factoryequipment.
Time tickets record use of the following labor for the month.These wages were paid in cash.
| Job 136 | $ | 12,100 | |
| Job 137 | 10,700 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,600 | ||
| Job 140 | 3,200 | ||
| Total direct labor | 103,500 | ||
| Indirect labor | 25,500 | ||
| Total | $ | 129,000 | |
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$545,000.
The company incurred the following overhead costs during themonth (credit Prepaid Insurance for expired factory insurance).
| Depreciation of factorybuilding | $ | 70,000 | |
| Depreciation of factoryequipment | 38,000 | ||
| Expired factory insurance | 11,000 | ||
| Accrued property taxespayable | 35,500 | ||
Applied overhead at month-end to the Work in Process Inventoryaccount (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost.
4. Prepare a report showing the total cost ofeach job in process and prove that the sum of their costs equalsthe Work in Process Inventory account balance. Prepare similarreports for Finished Goods Inventory and Cost of Goods Sold.
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Westin Watercraft%u2019s predetermined overheadrate for year 2011 is 200% of direct labor. Information on thecompany%u2019s production activities during May 2011 follows.
| a. | Purchased raw materials on credit, $260,000. |
| b. | Paid$130,200 cash for factory wages. |
| c. | Paid$16,000 cash to a computer consultant to reprogram factoryequipment. |
| d. | Materials requisitions record use of the following materials forthe month. |
| Job 136 | $ | 48,000 | |
| Job 137 | 32,500 | ||
| Job 138 | 20,000 | ||
| Job 139 | 22,400 | ||
| Job 140 | 7,400 | ||
| Total direct materials | 130,300 | ||
| Indirect materials | 21,000 | ||
| Total materials used | $ | 151,300 | |
| | | ||
| e. | Timetickets record use of the following labor for the month. |
| Job 136 | $ | 12,100 | |
| Job 137 | 10,700 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,400 | ||
| Job 140 | 3,600 | ||
| Total direct labor | 103,700 | ||
| Indirect labor | 26,500 | ||
| Total | $ | 130,200 | |
| | | ||
| f. | Applied overhead to Jobs 136, 138, and 139. |
| g. | Transferred Jobs 136, 138, and 139 to Finished Goods. |
| h. | SoldJobs 136 and 138 on credit at a total price of $545,000. |
| i. | The company incurred the following overheadcosts during the month (credit Prepaid Insurance for expiredfactory insurance). |
| Depreciation of factory building | $ | 68,500 | |
| Depreciation of factory equipment | 37,000 | ||
| Expired factory insurance | 12,000 | ||
| Accrued property taxes payable | 36,500 | ||
| j. | Applied overhead at month-end to the Goods inProcess (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost. |
| Required: | |
| 1. | Prepare a job cost sheet for each job worked onduring the month. (Omit the "$" sign in yourresponse.) |
| Job No. 136 | Job No. 137 | Job No. 138 | Job No. 139 | Job No. 140 | |
| Materials | $ | $ | $ | $ | $ |
| Labor | |||||
| Overhead | |||||
| Total cost | $ | $ | $ | $ | $ |
| | | | | | |
| 2. | Prepare journal entries to record the events andtransactions a through j. (Omit the "$" sign in yourresponse. ) |
| General Journal | Debit | Credit | |
| a. | |||
| b. | |||
| c. | |||
| d. | |||
| e. | |||
| f. | |||
| g. | |||
| h. | |||
| i. | |||
| j. | |||
| 4. | Prepare a report showing the total cost of eachjob in process and prove that the sum of their costs equals theGoods in Process Inventory account balance. Prepare similar reportsfor Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in yourresponse.) |
| Reports of Job Costs | |
| Goods in Process Inventory | |
| $ | |
| Balance | $ |
| | |
| Finished Goods Inventory | |
| $ | |
| Balance | $ |
| | |
| Costof Goods Sold | |
| $ | |
| Balance | $ |
| | |
