Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of dir

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.

Purchased raw materials on credit, $260,000.

Materials requisitions record use of the following materials for the month.

131,700

Paid $15,500 cash to a computer consultant to reprogram factory equipment.

Time tickets record use of the following labor for the month. These wages were paid in cash.

Applied overhead to Jobs 136, 138, and 139.

Transferred Jobs 136, 138, and 139 to Finished Goods.

Sold Jobs 136 and 138 on credit at a total price of $525,000.

The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

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.

rev: 02_01_2017_QC_CS-77139

Problem 19-3A Part 4

4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

Job 136 $ 48,000 Job 137 33,500 Job 138 20,000 Job 139 23,400 Job 140 6,800 Total direct materials

131,700

Indirect materials 21,500 Total materials used $ 153,200

Explanation / Answer

Solution:-

Part 4:-

Explanation:-

Please Rate or comment if you have any doubt regarding this solution.

Report of job cost Work in Process Inventory Job 137 65,900 Job 140 18,200 Balance 84,100 Finished Goods Inventory Job 139 141,600 Balance 141,600 Cost of Goods Sold Job 136 84,000 Job 138 134,300 Balance 218,300

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