Problem $15-4$A $($Algo$)$ Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P$1,$ P$2,$ P$3$

Skip to question

$[$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.

Purchased raw materials on credit, $$220,000.$

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

Job $136$ $ $49,500$

Job $13732,500$

Job $13820,000$

Job $13922,800$

Job $1406,800$

Total direct materials $131,600$

Indirect materials $21,000$

Total materials requisitions $ $152,600$

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

Job $136$ $ $12,100$

Job $13710,800$

Job $13837,900$

Job $13939,600$

Job $1404,000$

Total direct labor $104,400$

Indirect labor $26,500$

Total labor cost $ $130,900$

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

Transferred Jobs $136,138,$ and $139$ to Finished Goods Inventory.

Sold Jobs $136$ and $138$ on credit at a total price of $$535,000.$

Recorded the cost of goods sold for Jobs $136$ and $138.$

Incurred the following actual other overhead costs during the month.

Depreciation of factory building $ $68,500$

Depreciation of factory equipment $38,500$

Expired factory insurance $12,000$

Accrued property taxes payable $35,500$

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. Record the entry to apply overhead to jobs $136,138$ and $139.$

Note: Enter debits before credits. Record the transfer of completed jobs $136,138$ and $139$ to finished goods.

Note: Enter debits before credits. Record the entry for sales on account for Jobs $136$ and $138.$

Note: Enter debits before credits. Record the entry for the cost of jobs $136$ and $138.$

Note: Enter debits before credits.Record the entry for the actual overhead costs incurred.

Note: Enter debits before credits.Record the entry to apply overhead to Jobs $137$ and $140($Work in Process$).$

Note: Enter debits before credits.