Westin Watercraft%u2019s predetermined overhead rate for year 2011 is 200% of di

Question

Westin Watercraft%u2019s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company%u2019s production activities during May 2011 follows.

The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.)

Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. )

Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.)

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 factory equipment. d. Materials requisitions record use of the following materials for the month.

Explanation / Answer

2)

General Journal   Debit                      Credit


a.    Raw materials inventor          260,000   
    Accounts payable                                                         260,000
           

b.    Factory payroll                        130,200   
    Cash                                                                                 130,200
           

c.    Factory overhead          16,000   
    Cash                                16,000
           

d.    Goods in process inventory    130,300   
    Factory overhead                               21,000
    Raw materials inventory                                            151,300
           

e.    Goods in process inventory      103,700    
    Factory overhead            26,500
    Factory payroll                       130,200
           

f.    Goods in process inventory     178,800   
    Factory overhead                                                                178,800
           

g.    Finished goods inventory       358,600   
    Goods in process inventory       358,600
           

h.    Accounts receivable           545,000   
    Sales                                  545,000
           
    Cost of goods sold             218,000   
    Finished goods inventory          218,000
            

i.    Factory overhead             154,000    
    Accum. depreciation-factory building                             68,500   
    Accum. depreciation-factory equipment        37,000   
    Prepaid insurance                   12,000
    Property taxes payable                36,500

           

j.    Goods in process inventory    80,600   
    Factory overhead                                                                 80,600

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.