Required information Problem 15-4A (Static) 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 materials on credit, $200,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials requisitions $ 48,000 32,000 19,200 22,400 6,400 128,000 19,500 $ 147,500 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 $ 12,000 10,500 37,500 39,000 3,000 Job 140 Total direct labor Indirect labor Total labor cost 102,000 24,000 $ 126,000 d. Applied 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 $525,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 68,000 36,500 10,000 35,000 i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and Job 140) using the predetermined overhead rate of 200% of direct labor cost. Problem 15-4A (Static) Part 3 Problem 15-4A (Static) 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. Raw Materials Inventory Work in Process Inventory Ending balance 0 Ending balance Ending balance 0 Factory Overhead Finished Goods Inventory 0 Cost of Goods Sold Ending balance 0 Ending balance 0 Problem 15-4A (Static) Part 4 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. Total Job Costs (a) Work in Process Inventory Balance (b) Finished Goods Inventory Balance (c) Cost of Goods Sold Balance 0 0 $ 0 Problem 15-6A (Static) Preparing job cost sheets and materials ledger cards; computing inventory LO P1, P2, P3, P4 Sager Company builds custom retaining walls for large commercial customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials. Cinder block Boulders Stain (indirect materials) Total 200 units @ $250 = 95 units @ 180 = 55 units @ 75 = $ 50,000 17,100 4,125 $ 71,225 On May 4, the company began work on Job 102 for Woz Company and Job 103 for Reuben Company. Required: 1. Prepare job cost sheets for Jobs 102 and 103. Prepare three materials ledger cards for cinder blocks, boulders, and stain. Enter the beginning raw materials inventory amounts from above for each of these materials on their ledger cards. Then, follow the instructions in this list of activities to complete the job cost sheets and the materials ledger cards. a. Purchased raw materials on credit and recorded the following information from receiving reports. Receiving Report Number 426, cinder blocks, 250 units at $250 each. Receiving Report Number 427, boulders, 90 units at $180 each. Instructions: Enter the receiving report information on the materials ledger cards. b. Requisitioned the following raw materials for production. Requisition Number 35, for Job 102, 135 units of cinder blocks Requisition Number 36, for Job 102, 72 units of boulders. Requisition Number 37, for Job 103, 70 units of cinder blocks. Requisition Number 38, for Job 103, 38 units of boulders. Requisition Number 39, for 15 units of stain. Instructions: Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets. Enter the indirect materials amount on the materials ledger card. c. Received the following employee time tickets for work in May. Time tickets Numbers 1 to 10 for direct labor on Job 102, $90,000. Time tickets Numbers 11 to 30 for direct labor on Job 103, $65,000. Time tickets Numbers 31 to 36 for indirect labor, $19,250. Instructions: Record direct labor from the time tickets on the job cost sheets. d. Finished Job 102. The company applies overhead to each job with a predetermined overhead rate of 80% of direct labor cost. Instructions: Enter the applied overhead on the cost sheet for Job 102, fill in the cost summary section of the cost sheet, and then mark the cost sheet "Finished." e. Applied overhead cost to Job 103 based on the job's direct labor used to date. Instructions: Enter applied overhead on the job cost sheet for Job 103. 2. Job 102 was sold on credit for $400,000. Compute gross profit for the month. 3. Determine the balances reported on the month-end balance sheet for Raw Materials Inventory and Work in Process Inventory. 2. Job 102 was sold on credit for $400,000. Compute gross profit for the month. 3. Determine the balances reported on the month-end balance sheet for Raw Materials Inventory and Work In Process Inventory. Complete this question by entering your answers in the tabs below. Required 1 Job Cost Sheets Required 1 Materials Requisition Required 2 Required 3 Prepare job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e. JOB COST SHEET Customer's Name Woz Company Job Number 102 Direct Materials Direct Labor Overhead Requisition Number Cost Time Ticket Number Cost Rate % Cost Total Summary of Costs Total cost of Job $ 0 Total 0 Customer's Name Requisition Number Reuben Company Direct Materials Direct Labor Cost Time Ticket Number Total Summary of Costs 0 Total 0 Total 0 Job Number 103 Overhead Cost Rate % Cost 0 Total Total cost of Job $ 0 < Required 1 Job Cost Sheets Required 1 Materials Requisition >