Required information

Problem 15-4A (Algo) Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P1, P2, P3

Skip to question

[The following information applies to the questions displayed below.] Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys 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	$ 48,500
Job 137	34,000
Job 138	20,000
Job 139	23,400
Job 140	7,200
Total direct materials	133,100
Indirect materials	21,000
Total materials requisitions	$ 154,100

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

Job 136	$ 12,200
Job 137	10,700
Job 138	37,500
Job 139	39,400
Job 140	3,200
Total direct labor	103,000
Indirect labor	24,000
Total labor cost	$ 127,000

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 $525,000.

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	$ 69,000
Depreciation of factory equipment	38,000
Expired factory insurance	10,000
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.

Problem 15-4A (Algo) 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.