not 2, 3, or 4. Chapter 2 Job Order Costing and Analysis 75 raft\'s predetermine
ID: 2331194 • Letter: N
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not 2, 3, or 4.
Chapter 2 Job Order Costing and Analysis 75 raft's predetermined overhead rate for 2017 is 200% of direct labor. Information on the Widmer Waterc company's production activities during May 2017 follows. a. Purchased raw materials on credit, $200,000. b. Materials requisi Problem 2.3A Source documents, journal entries, and accounts in jot order costing P1 P2 P3 itions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used 48,000 . 32,000 19,200 22,400 6,400 128,000 19,500 .. $147,500 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. Job 136 Job 137 Job 138 Job 139 Job 140 $ 12.000 10,500 37,500 39,000 3,000 102,000 24,000 Indirect labor. Total 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. Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $68,000 36,500 10,000 35,000 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. Required 1. Prepare a job cost sheet for each job worked on during the month. Use the following simplified form. Job No. Materials. Labor Overhead Total cost 2. Prepare journal entries to record the events and transactions a throughi 3. Set up T-accounts for each of the following general ledger accounts, each of which started the month Check (2eC Fcory to with a zero balance: Raw Materials Inventory: Work in Process Inventory; Finished Goods Inventory: ve Factory Overhead; Cost of Goods Sold. Then post the journal entries to these T-accounts and deter mine the balance of each account. 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Check 4) Finished Goods Inventory and Cost of Goods Sold. to Inventory $139.400Explanation / Answer
Job Sheet Job 136 Job 137 Job 138 Job 139 Job 140 Materials $49,000 $32,000 $19,200 $22,800 $6,600 Labour $12,200 $10,700 $37,900 $39,400 $4,000 Overhead Cost $24,400 $21,400 $75,800 $78,800 $8,000 Total $85,600 $64,100 $132,900 $141,000 $18,600 Journal Entries 1 Raw material Inventory $260,000 To Accounts Payable $260,000 (Being Raw Materials Purchased on Credit 2 Factory Payroll $130,700 To Cash $130,700 (Being Cash paid for Factory Wages 3 Factory Overhead $15,000 To Cash $15,000 (Being Cash paid for Repairs to Factory Equipment) 4 Goods In Process $129,600 Factory Overhead $21,000 To Raw Material Inventory $150,600 (Being Raw Materials consumed in the month) 5 Goods In Process $104,200 Factory Overhead $26,500 To Factory Payroll $130,700 (Being Direct Labour applied in Production) 6 Factory Overhead $151,500 To Accumulated Depreciation-Factory Building $68,000 To Accumulated Depreciation-Factroy Equipment $37,500 To Prepaid Insurance $11,000 To Property Taxes Payable $35,000 (Being Factory Overhead incurred during the Month) 7 Goods In Process $179,000 To Factory overhead $179,000 (Being Overhead applied to Job 136,138 & 139) 8 Finished Goods $359,500 To Goods in Process $359,500 (Being Goods in process transferred to Finished goods) 9 Accounts Receivable $550,000 To Sales $550,000 Cost of Goods Sold $359,500 To Finished Goods $359,500 (Being Sales & Cost of goods recorded) 10 Goods in Process $29,400 To Factory Overhead $29,400 (Being Overhead applied to Job 137 & 140) 11 Cost of Goods Sold $5,600 To Factory Overhead $5,600 (Being Factory Overhead underapplied) Raw Materials Inventory Debit($) Credit($) Balance($) Raw Materials purchase 260000 260000 Goods In Process 129600 130400 Factory Overhead-Indirect Materials 21000 109400 Goods in Process Inventory Debit($) Credit($) Balance($) Raw Material Inventory transferred 129600 129600 Direct Labour Transferred 104200 233800 Factory Overhead 179000 412800 Finished Goods Inventory 359500 53300 Factory overhead 29400 82700 Finished Goods Inventory Debit($) Credit($) Balance($) Goods in Process 359500 359500 Cost of Goods Sold 359500 0 Factory Payroll Debit($) Credit($) Balance($) Wages paid 130700 130700 Goods in Process-Wages transferred 104200 26500 Factory Overhead 26500 0 Factory Overhead Debit($) Credit($) Balance($) Repairs to Factory equipment 15000 15000 Indirect Material 21000 36000 Indirect Labour 26500 62500 Accumulated Depreciation-Factory Building 68000 130500 Accumulated Depreciation-Factory Equipment 37500 168000 Prepaid Insurance 11000 179000 Property taxes payable 35000 214000 Goods In process 179000 35000 Goods In process 29400 5600 Cost of Goods sold 5600 0 Cost of Goods sold Debit($) Credit($) Balance($) Finished goods inventory 359500 359500 Factory overhead 5600 365100 Report of Job Costs-Goods in Process Cost of Job No 137 $64,100 Cost of Job No 140 $18,600 Total Goods In Process Inventory balance $82,700 Finished Goods Inventory Cost of Job 136 $85,600 Cost of Job 138 $132,900 Cost of Job 139 $141,000 Total $359,500 It is equal to the Finished goods Inventory and Cost of Goods Sold
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