0 Required information The fowowing information appies to the questions displaye

Question

0 Required information The fowowing information appies to the questions displayed below wichner watercraft's predetermined overhead rate for the year 2017 is 20% of direct labor. Information on the company Part 2 of 4 production activities during May 2017 foliows a. Purchased raw materials on crect, $240,000 b. Materials requisitions record use of the folowing materials for the month 10 33,000 direet materiaie Indirect nateri fotal naterials ured . Pald $15,000 cash to a computer consultant to reprogram factory equipment d. Time Sickets record use of the follawing labor for the month. These wages were paid in cash. 12,00 39,600 Total dsrect Labor tndireet iaber Tetal 129,70 C Prev 5 67 of 20 Next

Explanation / Answer

Date Account title and explanation Debit Credit a Raw material Inventory 240000 Accounts Payable 240000 (To record purchase of raw materials) b Work in Process 131800 Factory overhead 20000 Raw material Inventory 151800 (To record usage of materials) c Factory Equipment 15000 Cash 15000 (To record payment for Factory Equipment) d Work in Process 103700 Factory Overhead 26000 Cash 129700 (To record wages paid) e Work in process 178600 Factory overhead 178600 (To record application of overhead f Finished Goods 359700 (50000+19200+22600+12000+37700+39600+178600) Work in process 359700 (To record finished goods) g Accounts Receivable 535000 Sales 535000 (To record sales) Cost of goods sold 218300 (50000+19200+12000+37700)+(12000+37700)*2 Finished Goods 218300 (To record cost of goods sold) h Factory Overhead 151500 Accumulated Depreciation-Building 68000 Accumulated Depreciation-Factory Equipment 37000 Prepaid Insurance 11000 Property taxes Payable 35500 (To record overhead incurred) i Work in Process 28800 (10600+3800)*2 Factory overhead 28800 (To record application of overhead)

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