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Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

[The following information applies to the questions displayed below.]

Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows.\

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a. Purchased raw materials on credit, $200,000.

b. Materials requisitions record use of the following materials for the month.

Job 136	$	49,500
Job 137		32,500
Job 138		19,200
Job 139		22,800
Job 140		6,400
Total direct materials		130,400
Indirect materials		21,500
Total materials used	$	151,900

c. Paid $15,250 cash to a computer consultant to reprogram factory equipment.

d. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$	12,000
Job 137		10,600
Job 138		38,100
Job 139		39,400
Job 140		3,400
Total direct labor		103,500
Indirect labor		24,500
Total	$	128,000

e. Applied overhead to Jobs 136, 138, and 139.

f. Transferred Jobs 136, 138, and 139 to Finished Goods.

g. Sold Jobs 136 and 138 on credit at a total price of $545,000.

h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		38,000
Expired factory insurance		11,000
Accrued property taxes payable		36,500

i. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

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Problem 15-3A Part 3

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Raw Materials Inventory					Work in Process Inventory
a.	200,000				b.	130,400
		130,400	b.		d.	103,500
		21,500	b.
End.bal.	48,100
					End.bal.	233,900
Factory Overhead					Finished Goods Inventory
					End.bal.	0
End.bal.	0
Cost of Goods Sold
End.bal.	0

Answer 1

		job 136	job 137	job138	job139	job140	total
Materials		49,500	32,500	19,200	22,800	6,400	130,400
labor		12,000	10,600	38,100	39,400	3,400	103,500
overhead		24,000	21200	76200	78800	6800	207,000
total		85,500	64,300	133,500	141,000	16,600	440,900
	T- Accounts
Raw materials inventory					Work in process inventory
a.	200,000				b.	130,400
		151,900	b.		d.	103,500
					e.	179,000
end bal	48,100						360,000	f.
					i.	28000
					bal	80,900
Factory overhead					finished goods inventory
b.	21,500				f.	360,000
c.	15,250						219,000	g.
d.	24,500				bal	141,000
		179,000	e.
h.	154,000
		28,000	i
bal	8,250
cost of goods sold
g.	219,000
end bal	219,000