The following information applies to the questions displayed

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, $200,000. b. Materials requisitions record use of the following materials for the month. ob 136 ob 137 ob 138 ob 139 ob 148 Total direct materials Indirect materials Total materials used s 48,88e 32,880 19,280 22,480 6,480 128,000 19,580 $147, 50e c. Paid $15,000 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 ob 136 Dob 137 ob 138 Job 139 Job 14e Total direct labor Indirect labor Total s12,e89 1e, 5ee 37,5e0 39,ea0 3,800 182,e80 24,e0e $126,88e 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 $525,000 h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $68,000

Solution

Part 1)

The job cost sheet for each month worked is prepared as below:

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Part 2)

The journal entries are prepared as below:

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Part 3)

The T-Accounts are prepared as below:

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Part 4)

The complete report is given as follows:

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials	48,000	32,000	19,200	22,400	6,400
Labor	12,000	10,500	37,500	39,000	3,000
Overhead (200%*Direct Labor Cost)	24,000	21,000	75,000	78,000	6,000
Total Cost	$84,000	$63,500	$131,700	$139,400	$15,400