cesRequired 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 activitiesduring May follows.a. Purchased raw materials on credit, $240,000.b. Materials requisitions record use of the following materials for the month.Job 136Job 137Job 138Job 139Job 140Total direct materialsIndirect materialsc. Time tickets record use of the following labor for the month. These wages were paid in cash.131,80021,500Total materials requisitions $ 153,300Job 136Job 137Job 138Job 139Job 140Total direct laborIndirect laborTotal labor costBalanced. 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 $525,000.g. Recorded the cost of goods sold for Jobs 136 and 138.h. Incurred the following actual other overhead costs during the month.BalanceTotal Job Costs(a) Work in Process InventoryJob 136Balance(b) Finished Goods InventoryDepreciation of factory buildingDepreciation of factory equipmentExpired factory insuranceAccrued property taxes payable$ 49,00033,00019,60023,4006,800$ 12,10010,60037,50039,0003,4004.(a) Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory accountbalance.(b) Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods Inventorybalance.(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 Sold102,60027,000$ 129,600i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using thepredetermined overhead rate of 200% of direct labor cost.$85,30085,300$ 68,00038,50011,00035,0000

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Description: cesRequired 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 activitiesduring May follows.a. Purchased raw mater

Job costing is a method of costing where in all the costs like direct materials, direct labor and…

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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.

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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