Required information [The following information applies to the questions displayed below.) Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials $ 49,500 34,000 20,000 22,800 6,400 132,700 20,500 Total materials requisitions $ 153,200 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 $ 12,100 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost 10,700 37,900 39,000 4,000 103,700 26,500 $ 130,200 d. 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 $540,000. 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 building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 69,500 38,500 11,000 36,000 1. Applied overhead at month-end to the Work In Process Inventory account (for Job 137 and 140) using the 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 Inventory account balance. (b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods 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 Inventory Balance (b) Finished Goods Inventory Balance (c) Cost of Goods Sold" Balance
Required information [The following information applies to the questions displayed below.) Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials $ 49,500 34,000 20,000 22,800 6,400 132,700 20,500 Total materials requisitions $ 153,200 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 $ 12,100 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost 10,700 37,900 39,000 4,000 103,700 26,500 $ 130,200 d. 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 $540,000. 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 building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 69,500 38,500 11,000 36,000 1. Applied overhead at month-end to the Work In Process Inventory account (for Job 137 and 140) using the 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 Inventory account balance. (b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods 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 Inventory Balance (b) Finished Goods Inventory Balance (c) Cost of Goods Sold" Balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities
during May follows.
a. Purchased raw materials on credit, $220,000.
b. Materials requisitions record use of the following materials for the month.
Job 136
Job 137
Job 138
Job 139
Job 140
Total direct materials
Indirect materials
$ 49,500
34,000
20,000
22,800
6,400
132,700
20,500
Total materials requisitions $ 153,200
c. Time tickets record use of the following labor for the month. These wages were paid in cash.
Job 136
Job 137
$ 12,100
Job 138
Job 139
Job 140
Total direct labor
Indirect labor
Total labor cost
10,700
37,900
39,000
4,000
103,700
26,500
$ 130,200
d. 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 $540,000.
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 building
Depreciation of factory equipment
Expired factory insurance
Accrued property taxes payable
$ 69,500
38,500
11,000
36,000
1. Applied overhead at month-end to the Work In Process Inventory account (for Job 137 and 140) using the
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 Inventory account
balance.
(b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods 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 Inventory
Balance
(b) Finished Goods Inventory
Balance
(c) Cost of Goods Sold"
Balance
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