Required information
[The following information applies to the questionsdisplayed below.]
Widmer Watercraftâs predetermined overhead rate for the year 2017is 200% of direct labor. Information on the companyâs productionactivities during May 2017 follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials forthe month.
Job 136 $ 49,000 Job 137 33,500 Job 138 20,200 Job 139 22,800 Job 140 7,000 Total direct materials 132,500
Indirect materials 21,000 Total materials used $ 153,500
Paid $15,750 cash to a computer consultant to reprogram factoryequipment.
Time tickets record use of the following labor for the month.These wages were paid in cash.
Job 136 $ 12,100 Job 137 10,700 Job 138 37,900 Job 139 39,600 Job 140 3,200 Total direct labor 103,500 Indirect labor 25,500 Total $ 129,000
Applied overhead to Jobs 136, 138, and 139.
Transferred Jobs 136, 138, and 139 to Finished Goods.
Sold Jobs 136 and 138 on credit at a total price of$545,000.
The company incurred the following overhead costs during themonth (credit Prepaid Insurance for expired factory insurance).
Depreciation of factorybuilding $ 70,000 Depreciation of factoryequipment 38,000 Expired factory insurance 11,000 Accrued property taxespayable 35,500
Applied overhead at month-end to the Work in Process Inventoryaccount (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost.
4. Prepare a report showing the total cost ofeach job in process and prove that the sum of their costs equalsthe Work in Process Inventory account balance. Prepare similarreports for Finished Goods Inventory and Cost of Goods Sold.
Report of Job Costs Work inProcess Inventory Job 137 Job 140 Balance 0 FinishedGoods Inventory Job 139 Balance 0 Cost ofGoods Sold Job 136 Job 138 Balance $0
Required information
[The following information applies to the questionsdisplayed below.]
Widmer Watercraftâs predetermined overhead rate for the year 2017is 200% of direct labor. Information on the companyâs productionactivities during May 2017 follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials forthe month.
Job 136 | $ | 49,000 | |
Job 137 | 33,500 | ||
Job 138 | 20,200 | ||
Job 139 | 22,800 | ||
Job 140 | 7,000 | ||
Total direct materials | 132,500 | ||
Indirect materials | 21,000 | ||
Total materials used | $ | 153,500 | |
Paid $15,750 cash to a computer consultant to reprogram factoryequipment.
Time tickets record use of the following labor for the month.These wages were paid in cash.
Job 136 | $ | 12,100 | |
Job 137 | 10,700 | ||
Job 138 | 37,900 | ||
Job 139 | 39,600 | ||
Job 140 | 3,200 | ||
Total direct labor | 103,500 | ||
Indirect labor | 25,500 | ||
Total | $ | 129,000 | |
Applied overhead to Jobs 136, 138, and 139.
Transferred Jobs 136, 138, and 139 to Finished Goods.
Sold Jobs 136 and 138 on credit at a total price of$545,000.
The company incurred the following overhead costs during themonth (credit Prepaid Insurance for expired factory insurance).
Depreciation of factorybuilding | $ | 70,000 | |
Depreciation of factoryequipment | 38,000 | ||
Expired factory insurance | 11,000 | ||
Accrued property taxespayable | 35,500 | ||
Applied overhead at month-end to the Work in Process Inventoryaccount (Jobs 137 and 140) using the predetermined overhead rate of200% of direct labor cost.
4. Prepare a report showing the total cost ofeach job in process and prove that the sum of their costs equalsthe Work in Process Inventory account balance. Prepare similarreports for Finished Goods Inventory and Cost of Goods Sold.
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