Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct

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

job 136 job 137 job138 job139 job140 total Materials 48,000 33,500 19,800 22,800 7,200 131,300 labor 12,200 10,500 37,900 39,600 3,600 103,800 overhead 24,400 21000 75800 79200 7200 207,600 total 84,600 65,000 133,500 141,600 18,000 442,700 2) TR General Journal Debit Credit a) Raw materials inventory 240,000 Accounts payable 240,000 b) Factory wages 127,800 cash 127,800 c) Factory overhead 15,500 cash 15,500 d) Work in process inventory 131,300 Factory overhead 20,000 Raw materials inventoy 151,300 e) Work in process inventory 103,800 Factory overhead 24,000 Factory payroll 127,800 f) Work in process overhead 179,400 Factory overhead 179,400 g) finished goods inventory 359,700 Work in process inventory 359,700 h) Accounts receivable 540,000 Sales 540,000 cost of goods sold 218,100 finished goods inventory 218,100 i) Factory overhead 153,000 Accumulated depreciation-factory building 69,500 Accumulated depreciation-factory equipment 37,000 prepaid insurance 11,000 property taxes payable 35,500 j work in process inventory 28,200 Factory overhead 28,200 Report of Job costs Work in process inventory job 137 65,000 job 140 18,000 Balance 83,000 finished goods inventory job 139 141,600 Balance 141,600 cost of goods sold job 136 84,600 job 138 133,500 balance 218,100

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