Required information

Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

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

1. Purchased raw materials on credit, $260,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		34,000
Job 138		19,400
Job 139		23,200
Job 140		7,000
Total direct materials		132,100
Indirect materials		21,500
Total materials used	$	153,600

3. Paid $16,000 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	$	12,100
Job 137		10,800
Job 138		37,700
Job 139		39,200
Job 140		4,000
Total direct labor		103,800
Indirect labor		26,000
Total	$	129,800

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 $545,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		36,500
Expired factory insurance		11,000
Accrued property taxes payable		37,000

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.

Problem 15-3A Part 3

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Required information

Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

Skip to question

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

1. Purchased raw materials on credit, $260,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		34,000
Job 138		19,400
Job 139		23,200
Job 140		7,000
Total direct materials		132,100
Indirect materials		21,500
Total materials used	$	153,600

3. Paid $16,000 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	$	12,100
Job 137		10,800
Job 138		37,700
Job 139		39,200
Job 140		4,000
Total direct labor		103,800
Indirect labor		26,000
Total	$	129,800

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 $545,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		36,500
Expired factory insurance		11,000
Accrued property taxes payable		37,000

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.

Problem 15-3A Part 3

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

Required information

Problem 15-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

Skip to question

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

1. Purchased raw materials on credit, $260,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		34,000
Job 138		19,400
Job 139		23,200
Job 140		7,000
Total direct materials		132,100
Indirect materials		21,500
Total materials used	$	153,600

3. Paid $16,000 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	$	12,100
Job 137		10,800
Job 138		37,700
Job 139		39,200
Job 140		4,000
Total direct labor		103,800
Indirect labor		26,000
Total	$	129,800

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 $545,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		36,500
Expired factory insurance		11,000
Accrued property taxes payable		37,000

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.

Problem 15-3A Part 3

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance.

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance. Raw Materials Inventory Work in Process Inventory End.bal. End.bal. Factory Overhead Finished Goods Inventory End.bal. End.bal. Cost of Goods Sold End.bal