[The following information applies to the questions displayed below.] Widmer Wat

Question

[The following information applies to the questions displayed below.]

Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows.

Purchased raw materials on credit, $220,000.

Materials requisitions record use of the following materials for the month.

132,500

Paid $15,750 cash to a computer consultant to reprogram factory equipment.

Time tickets record use of the following labor for the month. These wages were paid in cash.

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 the month (credit Prepaid Insurance for expired factory insurance).

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.

Required:
1. Prepare a job cost sheet for each job worked on during the 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

Explanation / Answer

1. Prepare a job cost sheet for each job worked on during the month.

Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials 49000 33500 20200 22800 7000 Labor 12100 10700 37900 39600 3200 Overhead 24200 21400 75800 79200 6400 Total cost $85300 $65600 $133900 $141600 $16600

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