Required information Problem 15-3A Source documents, journal entries, and accoun
ID: 2608217 • Letter: R
Question
Required information
Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3
[The following information applies to the questions displayed below.]
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, $200,000.
b. Materials requisitions record use of the following materials for the month.
130,400
c. Paid $15,250 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 cash.
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 $545,000.
h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).
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.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Problem 15-3A 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 $ 49,500 Job 137 32,500 Job 138 19,200 Job 139 22,800 Job 140 6,400 Total direct materials130,400
Indirect materials 21,500 Total materials used $ 151,900Explanation / Answer
Answer 4. Finished goods WIP Beg. Bal - Beg. Bal - WIP 360,000 219,000 Cost of Goods Sold Direct Materials 130,400 360,000 Finished Goods Inventory Factory Labor 103,500 End. Bal. 141,000 Factory Overhead 200,200 End. Bal. 74,100 Work-in-Process, Ending: 137 140 Total Direct Material 32,500 6,400 38,900 Factory Labor 10,600 3,400 14,000 Factory Overhead -200% 21,200 6,800 21,200 Total 64,300 16,600 74,100 Finished Good Inventory, Ending 139 Direct Material 22,800 Factory Labor 39,400 Factory Overhead -200% 78,800 Total 141,000 Cost of Goods Sold: 136 138 Total Direct Material 49,500 19,200 68,700 Factory Labor 12,000 38,100 50,100 Factory Overhead -200% 24,000 76,200 100,200 Total 85,500 133,500 219,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.