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, $240,000. b. Materials requisitions record use of the following materials for the month.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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[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, $240,000.
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
c. Time tickets record use of the following labor for the month. These wages were paid in cash.
131,800
21,500
Total materials requisitions $ 153,300
Job 136
Job 137
Job 138
Job 139
Job 140
Total direct labor
Indirect labor
Total labor cost
Balance
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.
Balance
Total Job Costs
(a) Work in Process Inventory
Job 136
Balance
(b) Finished Goods Inventory
Depreciation of factory building
Depreciation of factory equipment
Expired factory insurance
Accrued property taxes payable
$ 49,000
33,000
19,600
23,400
6,800
$ 12,100
10,600
37,500
39,000
3,400
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 fheir costs equals the Cost of Goods Sold balance.
(c) Cost of Goods Sold
102,600
27,000
$ 129,600
i. 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.
$
85,300
85,300
$ 68,000
38,500
11,000
35,000
0
Transcribed Image Text:ces 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, $240,000. 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 c. Time tickets record use of the following labor for the month. These wages were paid in cash. 131,800 21,500 Total materials requisitions $ 153,300 Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost Balance 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. Balance Total Job Costs (a) Work in Process Inventory Job 136 Balance (b) Finished Goods Inventory Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 49,000 33,000 19,600 23,400 6,800 $ 12,100 10,600 37,500 39,000 3,400 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 fheir costs equals the Cost of Goods Sold balance. (c) Cost of Goods Sold 102,600 27,000 $ 129,600 i. 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. $ 85,300 85,300 $ 68,000 38,500 11,000 35,000 0
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