Widmer watercraft\'s predetermined overhead rate for the year 2017 is 200% of di

Question

Widmer watercraft's predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company's production activities during May 2017 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 138 Job 139 Job 140 49,000 34,000 19,200 22,600 6,400 Total direct materials 131,200 19,500 Total materials used $150,700 c. Pai d. Time tickets record use of the following labor for the month. These wages were paid in cash 11 12 of 12Next > 0???

Explanation / Answer

Answer 1. Job 136 137 138 139 140 Total Direct Material            49,000        34,000          19,200          22,600            6,400          131,200 Factory Labor            12,300        10,700          37,700          39,400            3,000          103,100 Factory Overhead - 200%            24,600        21,400          75,400          78,800            6,000          206,200 Total            85,900        66,100        132,300       140,800          15,400          440,500 Answer 2. Journal Entry Date Particulars Dr. Amt Cr. Amt a. Direct Materials                                           240,000.00    Accounts Payable    240,000.00 (Record the material purchased on Account) b. Work in Process Inventory        131,200.00 Factory Overhead                          19,500.00    Direct Material    150,700.00 (Record the meterial issue ) c. Factory Overhead                   15,250.00    Cash      15,250.00 (Record the amt Paid to reprogram factory equip.) d. Work in Process Inventory        103,100.00 Factory Overhead                                     25,000.00 Cash    128,100.00 (record the wages paid) e. Work in Process Inventory        178,800.00     Factory Overheads    178,800.00 (Record the Overhead applied - Job 136, 138 & 139) f. Work in Process Inventory        359,000.00    Finished Goods    359,000.00 (Record the Job 136, 138 & 139 Completed) g(1). Accounts receivables                            525,000.00    Sales    525,000.00 (record the Job 136 & 138 sold) g(2) Cost of Goods Sold                                   218,200.00    Finished Goods    218,200.00 (record the cost of goods sold) h Factory Overhead                                     156,500.00    Accumulated Dep. - Factory Build      70,000.00    Accumulated Dep. - Factory Equip.      38,000.00    Prepaid Insurance      12,000.00    Property Tax Payable      36,500.00 (record the factory overhead) i. WIP                                                         Dr.          27,400.00     To Factory Overheads      27,400.00 (Records the Overehead applied- Job 137 & 140) Answer 3. Raw Materials Inventory Work in Process Inventory Beg. Bal.                     -      150,700.00 b. Beg. Bal.                     -      359,000.00 f. a.    240,000.00 b.    131,200.00 d.    103,100.00 e.    178,800.00 i.      27,400.00 End. Bal.      89,300.00 End. Bal.      81,500.00 Factory Overhead Finished Goods Inventory Beg. Bal.                     -      178,800.00 e. Beg. Bal.                     -      218,200.00 g(2) b.      19,500.00      27,400.00 i. f.    359,000.00 c.      15,250.00        6,550.00 Underapplied d.      25,000.00 h    156,500.00 End. Bal.        3,500.00 End. Bal.    140,800.00 Cost of Goods Sols Beg. Bal.                     -   g(2)    218,200.00 End. Bal.    218,200.00 Answer 4. Report of Job Cost Work in Process Inventory Job 137      66,100.00 Job 140      15,400.00 Total      81,500.00 Finished Goods Inventory Job 139    140,800.00 Total    140,800.00 Cost of Goods Sold Job 136      85,900.00 Job 138    132,300.00 Total    218,200.00

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