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

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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 136 job 137 job138 job139 job140 total Materials 48,000 33,500 19,200 22,800 7,200 130,700 labor 12,200 10,600 37,900 39,000 4,000 103,700 overhead 24,400 21200 75800 78000 8000 207,400 total 84,600 65,300 132,900 139,800 19,200 441,800 2) TR General Journal Debit Credit a) Raw materials inventory 240,000 Accounts payable 240,000 b) Work in process inventory 130,700 Factory overhead 20,500 Raw materials inventoy 151,200 c) Factory overhead 15,500 cash 15,500 d) Work in process inventory 103,700 Factory overhead 26,500 Cash 130,200 e) Work in process overhead 178,200 Factory overhead 178,200 f) finished goods inventory 357,300 Work in process inventory 357,300 g) Accounts receivable 540,000 Sales 540,000 cost of goods sold 217,500 finished goods inventory 217,500 h) Factory overhead 152,500 Accumulated depreciation-factory building 68,000 Accumulated depreciation-factory equipment 38,000 prepaid insurance 11,000 property taxes payable 35,500 i) work in process inventory 29,200 Factory overhead 29,200 T- Accounts Raw materials inventory Work in process inventory a. 240,000 b. 130,700 151,200 b. d. 103,700 e. 178,200 end bal 88,800 357,300 f. i. 29200 bal 84,500 Factory overhead finished goods inventory b. 20,500 f. 357,300 c. 15,500 217,500 g. d. 26,500 bal 139,800 178,200 e. h. 152,500 29,200 i bal 7,600 cost of goods sold g. 217,500 end bal 217,500 Report of Job costs Work in process inventory job 137 65,300 job 140 19,200 Balance 84,500 finished goods inventory job 139 139,800 Balance 139,800 cost of goods sold job 136 84,600 job 138 132,900 balance 217,500

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