Problem 153A Source documents journal entries and accounts i

Problem 15-3A Source documents, journal entries, and accounts in job order costing LO The following information applies to the questions displayed below) Widmer watercraft\'s predetermined overhead rte for the year 2017 is 200% of direct labor. Information on the production activities during May 2017 follows. a. Purchased raw materials on credit, $220,000 b. Materials requisitions record use of the following materials for the month. ob 136 Job 137 Job 138 Job 139 ob 148 Total direct materials s 48,000 34,800 19,600 22,800 7,000 131,400 20,000 S151,400 c. Paid $15,750 cash to a computer consultent to reprogram factory equipment d. Time tickets record use of the following labor for the month. These wages were paid in cash. 14 15 16 of 16 li Next )

Solution

                                               Journal Entries (Amount In $) Transaction General Journal Debit Credit a For purchasing raw material on credit Raw Material Inventory A/c                                       Dr. 220000 To Accounts Payable 220000 b For requisition of direct and indirect material Work in process                                                   Dr. 131400 Manufacturing Overhead A/c                                  Dr. 20000 To Raw Material Inventory A/c 151400 c For payment to computer consultant to reprogram factory equipment Manufacturing Overhead    15750 To Cash A/c 15750 d For paying direct and indirect labour in cash Work in process A/c                                              Dr. 103600 Manufacturing Overhead A/c                                   Dr. 25000 To Cash A/c 128600 e For applying overhead to Jobs 136, 138 and 139 Work in process A/c                                                 Dr. 182931 To Manufacturing Overhead A/c (Note 1)    182931 f For transferring of completed Jobs to finished goods Finished Goods A/c                                                   Dr. 362831 To Work in process A/c (Note 2) 362831 g (1) For recording entry for sales on account for Jobs 136 and 138 Accounts Receivable A/c                                            Dr. 550000 To Sales A/c 550000 g(2) For recording entry for the cost of sales of Jobs 136 and 138 Cost of Sale A/c                                                         Dr. 219492 To Finished Goods A/c (Note 3) 219492 h For Recording Other factory overheads ManufacturingOverhead                                   151000 To Accumulated Depreciation A/c 106000 To Prepaid Insurance A/c 10000 To Accrued Property Tax A/c 35000 i For recording entry to apply overhead to jobs 137 and 140 Work in process A/c                                                    Dr. 28819 To Manufacturing Overhead A/c (Note 4) 28819 Note 1 Total Direct Labour cost incurred 103600 200 % of direct Labour cost 207200 Total Manufacturing overhead 211750 Allocation rate (total man overhead/200% of total direct labour cost) 1.02 Total labour cost of Job 136, 138 and 139 89500 Overhead to be applied to Job 136, 138 and 139 182931 (Allocation rate*200%*total direct labour cost) Note 2 (Total cost of Job 136, 138 and 139) Direct Material cost 90400 Direct Labour cost 89500 Manufacturing overhead as applied 182931 Total 362831 Note 3 (Cost of sales of job 136 and 138) Direct Material cost 67600 Direct Labour cost 49900 Manufacturing overhead as applied 101992 Total 219492 Note 4 Total Direct Labour cost incurred 103600 200 % of direct Labour cost 207200 Total Manufacturing overhead 211750 Allocation rate (total man overhead/200% of total direct labour cost) 1.02 Total labour cost of Job 137 and 140 14100 Overhead to be applied to Job 136, 138 and 139 28819 (Allocation rate*200%*total direct labour cost)