Required information Problem 15-3A Source documents, journal entries, and accoun

Question

Required information

Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

[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.

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a. Purchased raw materials on credit, $200,000.

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

130,400

c. Paid $15,250 cash to a computer consultant to reprogram factory equipment.

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

e. Applied overhead to Jobs 136, 138, and 139.

f. Transferred Jobs 136, 138, and 139 to Finished Goods.

g. Sold Jobs 136 and 138 on credit at a total price of $545,000.

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

i. 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.

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Problem 15-3A Part 3

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Job 136 $ 49,500 Job 137 32,500 Job 138 19,200 Job 139 22,800 Job 140 6,400 Total direct materials

130,400

Indirect materials 21,500 Total materials used $ 151,900

Explanation / Answer

job 136 job 137 job138 job139 job140 total Materials 49,500 32,500 19,200 22,800 6,400 130,400 labor 12,000 10,600 38,100 39,400 3,400 103,500 overhead 24,000 21200 76200 78800 6800 207,000 total 85,500 64,300 133,500 141,000 16,600 440,900 T- Accounts Raw materials inventory Work in process inventory a. 200,000 b. 130,400 151,900 b. d. 103,500 e. 179,000 end bal 48,100 360,000 f. i. 28000 bal 80,900 Factory overhead finished goods inventory b. 21,500 f. 360,000 c. 15,250 219,000 g. d. 24,500 bal 141,000 179,000 e. h. 154,000 28,000 i bal 8,250 cost of goods sold g. 219,000 end bal 219,000

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