Problem 2-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

[The following information applies to the questions displayed below.] Widmer Watercrafts predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the companys production activities during May 2017 follows.

1. Purchased raw materials on credit, $220,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$	49,000
Job 137		34,000
Job 138		19,400
Job 139		22,600
Job 140		7,000
Total direct materials		132,000
Indirect materials		20,000
Total materials used	$	152,000

3. Paid $15,500 cash to a computer consultant to reprogram factory equipment.
4. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$	12,300
Job 137		10,700
Job 138		37,900
Job 139		39,200
Job 140		4,000
Total direct labor		104,100
Indirect labor		27,000
Total	$	131,100

5. Applied overhead to Jobs 136, 138, and 139.
6. Transferred Jobs 136, 138, and 139 to Finished Goods.
7. Sold Jobs 136 and 138 on credit at a total price of $535,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	70,000
Depreciation of factory equipment		36,500
Expired factory insurance		11,000
Accrued property taxes payable		35,500

9. 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.

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials
Labor
Overhead
Total cost