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 $
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 | $ |
|