Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct
ID: 2513608 • Letter: W
Question
Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).
Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.
25.
Required information
Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.)
26.
Required information
Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. )
27.
Required information
Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.)
Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.
Explanation / Answer
Part 25)
The job cost sheets are prepared as below:
_____
Part 26)
The journal entries are given as follows:
_____
Part 27)
The report is presented as below:
_____
The Goods in Process Inventory Ledger is prepared as follows:
The Goods in Inventory Account balance in the report and ledger reconcile with each other.
Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials 49,000 33,500 20,000 23,000 7,000 Labor 12,100 10,800 37,700 39,200 3,000 Overhead (200% of Labor) 24,200 21,600 75,400 78,400 6,000 Total cost $85,300 $65,900 $133,100 $140,600 $16,000Related Questions
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