1, 2 and 3 Chapter 2 Job Order Costing and Analysis 75 raft\'s predetermined ove
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1, 2 and 3
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
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Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials 48000 32000 19200 22400 6400 Labor 12000 10500 37500 39000 3000 Overhead 24000 21000 75000 78000 6000 Total cost $ 84000 63500 131700 139400 15400Related Questions
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