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 Total materials requisitions c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 48,500 33,500 19,600 23,000 6,800 131,400 21,000 $ 152,400 $ 12,100 10,700 37,700 39,200 3,200 102,900 27,000 $ 129,900 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 $525,000. 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 68,000 37,000 11,000 35,500 L 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.
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 Total materials requisitions c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 48,500 33,500 19,600 23,000 6,800 131,400 21,000 $ 152,400 $ 12,100 10,700 37,700 39,200 3,200 102,900 27,000 $ 129,900 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 $525,000. 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 68,000 37,000 11,000 35,500 L 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Job 139
Job 140
$ 48,500
33,500
19,600
Total direct
labor
Indirect labor
Total labor cost
23,000
6,800
materials
Indirect materials
Total materials
requisitions
c. Time tickets reçord use of the following labor for the month. These wages were paid in cash.
Job 136
$ 12,100
Job 137
10,700
Job 138
37,700
131,400
21,000
$
152,400
39,200
3,200
102,900
27,000
$
129,900
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 $525,000.
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
$
68,000
37,000
11,000
35,500
L 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.
Transcribed Image Text: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
0
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