Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company'sproduction activities during May follows.a. Purchased raw materials on credit, $220,000.b. Materials requisitions record use of the following materials for the month.$ 48,50033,00019,80023,2007,000131,50020,000$ 151,500Job 136Job 137Job 138Job 139Job 140Total direct materialsIndirect materialsTotal materials requisitionsc. Time tickets record use of the following labor for the month. These wages were paid in cash.$ 12,20010,70037,70039,2003,400103,200Job 136Job 137Job 138Job 139Job 140Total direct laborIndirect labor25,500Total labor cost$ 128,700d. Applied overhead to Jobs 136, 138, and 139.e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.f. Sold Jobs 136 and 138 on credit at a total price of $545,000.g. Recorded the cost of goods sold for Jobs 136 and 138.h. Incurred the following actual other overhead costs during the month.Depreciation of factory buildingDepreciation of factory equipmentExpired factory insuranceAccrued property taxes payable$ 70,00037,50012,00036,500i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) usingthe predetermined overhead rate of 200% of direct labor cost. 4.(a) Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventoryaccount balance.(b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the FinishedGoods Inventory balance.(c) Compute the total cost of each job sold, and prove that the sum of their costs equals the Cost of Goods Sold balance.Total Job Costs(a) Work in Process InventoryBalance(b) Finished Goods InventoryBalance(c) Cost of Goods SoldBalance$

Solution: Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials $48,500.00…

a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. $ 48,500 33,000 19,800 23,200 7,000 131,500 20,000 $ 151,500 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions c. Time tickets record use of the following labor for the month. These wages were paid in cash. $ 12,200 10,700 37,700 39,200 3,400 103,200 25,500 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 128,700

a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. $ 48,500 33,000 19,800 23,200 7,000 131,500 20,000 $ 151,500 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions c. Time tickets record use of the following labor for the month. These wages were paid in cash. $ 12,200 10,700 37,700 39,200 3,400 103,200 25,500 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 128,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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