Problem 15-4A (Algo) Preparing Job cost sheets, recording costs, preparing Inventory ledger accounts LO P1, P2, P3 [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 materlals on credit, $240,000. b. Materlals requisitions record use of the following materlals for the month. c. TIme tickets record use of the following labor for the month. These wages were paid in cash. d. Applled 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 $550,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. 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. Required: 1. Prepare a job cost sheet for each job worked on during the month. 2. Prepare journal entries to record the events and transactions a through i. Journal entry worksheet 45678 Note: Enter debits before credits. 2. Prepare journal entries to record the events and transactions a through i. Record raw material purchases on credit. 2 Record the requisition of direct materials. 3 Record the indirect materials. 4 Record the entry for direct labor, paid in cash. 5 Record the entry for indirect labor, paid in cash. 6 Record the entry to apply overhead to jobs 136,138 and 139. 7 Record the transfer of completed jobs 136, 138 and 139 to finished goods. 2. Prepare journal entries to record the events and transactions a through i. 6 Record the entry to apply overhead to jobs 136,138 and 139. 7 Record the transfer of completed jobs 136, 138 and 139 to finished goods. 8 Record the entry for sales on account for Jobs 136 and 138. 9 Record the entry for the cost of jobs 136 and 138. 10 Record the entry for the actual overhead costs incurred. 11 Record the entry to apply overhead to Jobs 137 and 140 (Work in Process). Note : = journal entry has been entered 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance 4. (a) 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. Problem 15-4A (Algo) Preparing Job cost sheets, recording costs, preparing Inventory ledger accounts LO P1, P2, P3 [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 materlals on credit, $240,000. b. Materlals requisitions record use of the following materlals for the month. c. TIme tickets record use of the following labor for the month. These wages were paid in cash. d. Applled 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 $550,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. 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. Required: 1. Prepare a job cost sheet for each job worked on during the month. 2. Prepare journal entries to record the events and transactions a through i. Journal entry worksheet 45678 Note: Enter debits before credits. 2. Prepare journal entries to record the events and transactions a through i. Record raw material purchases on credit. 2 Record the requisition of direct materials. 3 Record the indirect materials. 4 Record the entry for direct labor, paid in cash. 5 Record the entry for indirect labor, paid in cash. 6 Record the entry to apply overhead to jobs 136,138 and 139. 7 Record the transfer of completed jobs 136, 138 and 139 to finished goods. 2. Prepare journal entries to record the events and transactions a through i. 6 Record the entry to apply overhead to jobs 136,138 and 139. 7 Record the transfer of completed jobs 136, 138 and 139 to finished goods. 8 Record the entry for sales on account for Jobs 136 and 138. 9 Record the entry for the cost of jobs 136 and 138. 10 Record the entry for the actual overhead costs incurred. 11 Record the entry to apply overhead to Jobs 137 and 140 (Work in Process). Note : = journal entry has been entered 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance 4. (a) 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