Problem 15-4A (Algo) Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P1, P2, P3Skip to question

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Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows.

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

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

Job 136	$ 49,000
Job 137	32,500
Job 138	19,600
Job 139	23,200
Job 140	6,800
Total direct materials	131,100
Indirect materials	20,000
Total materials requisitions	$ 151,100

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

Job 136	$ 12,100
Job 137	10,600
Job 138	37,900
Job 139	39,000
Job 140	4,000
Total direct labor	103,600
Indirect labor	26,000
Total labor cost	$ 129,600

1. Applied overhead to Jobs 136, 138, and 139.
2. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
3. Sold Jobs 136 and 138 on credit at a total price of $540,000.
4. 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	37,500
Expired factory insurance	10,000
Accrued property taxes payable	36,000

1. 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.

Problem 15-4A (Algo) Part 2

2. Prepare journal entries to record the events and transactions a through i.