Requlred Informetlon The following information applies to th

Requlred Informetlon [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. a. Purchased raw materials on credit, $260,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 14e Total direct materials Indirect materials Total materials used s 58,888 32,88e 19,68e 22,68e 7,288 131,48e $152,48e c. Paid $16,000 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. Job 136 Job 137 Job 138 Job 139 Job 14e Total direct labor Indirect labor Total s 12,388 18, 78e 37,98e 39,48e 3,68e 183,98e 24,500 $128,48e 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 $530.000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance Depreciation of factory Deprec Expired factory insurance Accrued property taxes payable $78,88e 37,58e 11,98e 36,888 building iation of factory equipment 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.

Solution

1 Job Cost Sheet Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Total Material                    50,000             32,000             19,600             22,600               7,200 1,31,400 Labour                    12,300             10,700             37,900             39,400               3,600 1,03,900 Overhead                    24,600             21,400             75,800             78,800               7,200 2,07,800 Total Cost                    86,900             64,100         1,33,300         1,40,800             18,000 4,43,100 2 Journal Entry to record Raw material purchase on credit Raw Material Account Dr.         2,60,000 To, Creditor           2,60,000 3 Journal Entry to record requisition of Raw material Job No. 136 Dr.             50,000 Job No. 137 Dr.             32,000 Job No. 138 Dr.             19,600 Job No. 139 Dr.             22,600 Job No. 140 Dr.               7,200 Indirect Material Used Dr.             21,000 To, Raw Material Account         1,52,400 4 Journal Entry to record payment to computer consultant Factory equipment reprogram expense             16,000 To, Cash/ Bank             16,000