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 $ 50,000 33,500 19,500 23,000 7,400 133,500 21,000 $ 154,500 $ 12,200 10,600 38,100 39,600 4,000 104,500 26,500 $ 131,000 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 $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 building Depreciation of factory equipment Expired factory insurance; Accrued property taxes payable $70,000 37,500 10,000 35,500 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
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 $ 50,000 33,500 19,500 23,000 7,400 133,500 21,000 $ 154,500 $ 12,200 10,600 38,100 39,600 4,000 104,500 26,500 $ 131,000 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 $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 building Depreciation of factory equipment Expired factory insurance; Accrued property taxes payable $70,000 37,500 10,000 35,500 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, $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.
$ 12,200
10,600
38,100
39,600
4,000
104,500
26,500
$ 131,000
$50,000
33,500
19,600
23,000
7,400
133,500
21,000
$ 154,500
d. Applied overhead to Jobs 136, 138, and 139
e. Transferred Jobs 136, 138. and 139 to Finished Goods Inventory.
Depreciation of factory building
Depreciation of factory equipment
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.
Expired factory insurance.
Accrued property taxes payable
$70,000
37,500
10,000
35,500
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54116caa-f22b-40fd-ac71-cd149350f749%2F79f879e9-037d-4ec0-a238-32603e90eac9%2Fwam463l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(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
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.
$ 12,200
10,600
38,100
39,600
4,000
104,500
26,500
$ 131,000
$50,000
33,500
19,600
23,000
7,400
133,500
21,000
$ 154,500
d. Applied overhead to Jobs 136, 138, and 139
e. Transferred Jobs 136, 138. and 139 to Finished Goods Inventory.
Depreciation of factory building
Depreciation of factory equipment
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.
Expired factory insurance.
Accrued property taxes payable
$70,000
37,500
10,000
35,500
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.
Transcribed Image Text:4.
(0) 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.
Job 137
Balance
(b) Finished Goods Inventory
Balance
(c) Cost of Goods Sold
Balance
$
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