Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct

Question

Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows.

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.

2. Prepare journal entries to record the events and transactions a through i.

3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts

a. Purchased raw materials on credit, $240,000. b. Materials requisitions record use of the following materials for the month.

Explanation / Answer

Date Accounts title Dr Cr Raw materail Inventory a Raw Material Inventory $240,000 Dr Cr Accounts payable $240,000 Particulars Amount Particulars Amount Accounts Payable 240000 Work In process Inventory b Work In process Inventory Job 136 49,000 Job 136 49,000   Job 137 34,000   Job 137 34,000   Job 138 20,000   Job 138 20,000   Job 139 23,000   Job 139 23,000   Job 140 7,200   Job 140 7,200 Factory Overhead 20500 Raw Materail Inventory 133,200 Bal carried down 86,300 (Being raw material requistion) Total 240000 Total 240000 Factory Overhead 20500 Factory Payroll Raw Material Inventory 20500 Dr Cr (Being Indirect material used) Particulars Amount Particulars Amount Work In process Inventory c Factory Overhead $15,250 Job 136 12,300 Cash $15,250   Job 137 10,500 (being cash paid to computer consultant)   Job 138 38,100   Job 139 39,200 d Work In process Inventory   Job 140 3,000 Job 136 12,300 Factory Overhead 26000   Job 137 10,500 Bal carried down 129100   Job 138 38,100 Total 129100 Total 129100   Job 139 39,200   Job 140 3,000 factory Overhead Factory Payroll Payable 103,100 Dr Cr (Being direct labor used in jobs) Particulars Amount Particulars Amount Raw Material Inventory 20500 Work in Process Inventory Factory Overhead 26000 Factory Payroll Payable 26000 Job 136 (12300*200%) 24600 Factory Payroll Payable 26000 Accumulated Deprteciation-Factory Building 69500   Job 138 (38100*200%) 76200 (being indirect labor charged) Accumulated Deprteciation-Factory Equipment 38000   Job 139 (39200*200%) 78400 Prepaid Insurance 10000 Job 137 (10500*200%) 21000 e Work in Process Inventory   Accrued property taxes payable 36500   Job 140 (3000*200%) 6000 Job 136 (12300*200%) 24600 Cash 15250   Job 138 (38100*200%) 76200 Bal carried down 9,550   Job 139 (39200*200%) 78400 Total 215750 Total 215750 Factory Overhead 179200 (Overhead applied at 200% of direct labor hours) Work In process Inventory Dr Cr f Finished Goods inventory 220,200 Particulars Amount Particulars Amount Work in process Inventory Raw Material Inventory 133200 Finished Goods 220,200 Job 136 (12300+24600+49000) 85,900 Factory Payroll Payable 103100   Job 138 (38100+76200+20000) 134,300 Factory Overhead 179200 (BEING wip TRANSFERRED TO Finished goods of Job 136,138) Factory Overhead 27000 Bal carried down 222,300 g Accounts Receivable 545000 Total 442500 Total 442500 Sales 545000 (being sales on credit) Finsiehd Goods Inventory Dr Cr Cost of Good Sold 220,200 Particulars Amount Particulars Amount Finished Goods Inventory 220,200 Work in Process Inventory 220200 Cost of Good Sold 220,200 ( Being Finished goods transferred to COGS) Total 220200 Total 220200 h Factory Overhead 107500 Cost of Good Sold Accumulated Deprteciation-Factory Building 69500 Dr Cr Accumulated Deprteciation-Factory Equipment 38000 Particulars Amount Particulars Amount Prepaid Insurance 10,000 Finished Goods inventory 220200 Bal carried down 220,200   Accrued property taxes payable 36,500 Total 0 Total 0 i Work in Process Inventory Job 137 (10500*200%) 21000   Job 140 (3000*200%) 6000 Factory Overhead 27000 (Overhead applied at 200% of direct labor hours)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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