Problem 2-3A Source documents, journal entries, and accounts in job order costin

Question

Problem 2-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 The following information applies to the questions displayed belowJ Widmer Watercraft's predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company's production activities during May 2015 follows. a. Purchased raw materials on credit, $240,000 b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 133 Job 139 Job 140 $48,000 33,500 19,200 22,800 7,200 Total direct materials Indirect materials 130,700 20,500 Total materials used $151,200 c. Paid $15,500 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 cosh. Job 136 Job 137 Job 138 Job 139 Job 140 $12,200 10,600 37,900 39,000 4,000 Total direct labor Indirect labor 103,700 26,500 Total $130,200 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 $540,000. 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 38,000 11,000 35,500 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

Explanation / Answer

Job No 136 Job No 137 Job No 138 Job No 139 Job No 140 Material 48000 33500 19200 22800 7200 Labor 12200 10600 37900 39000 4000 Overhead@200$ of Direct Labor 24400 21200 75800 78000 8000 Total Cost 84600 65300 132900 139800 19200

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