Required information

Problem 19-3A 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.

Purchased raw materials on credit, $260,000.

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

Job 136	$	48,000
Job 137		33,500
Job 138		20,000
Job 139		23,400
Job 140		6,800
Total direct materials		131,700
Indirect materials		21,500
Total materials used	$	153,200

Paid $15,500 cash to a computer consultant to reprogram factory equipment.

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

Job 136	$	12,000
Job 137		10,800
Job 138		38,100
Job 139		39,400
Job 140		3,800
Total direct labor		104,100
Indirect labor		26,000
Total	$	130,100

Applied overhead to Jobs 136, 138, and 139.

Transferred Jobs 136, 138, and 139 to Finished Goods.

Sold Jobs 136 and 138 on credit at a total price of $525,000.

The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,000
Depreciation of factory equipment		38,000
Expired factory insurance		10,000
Accrued property taxes payable		36,000

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.

rev: 02_01_2017_QC_CS-77139

Problem 19-3A 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.

Raw Materials Inventory					Work in Process Inventory
a.	260,000	260,000	b.		b.
End.bal.	0
					End.bal.	0
Factory Overhead					Finished Goods Inventory
b.			e.
			g.
					End.bal.	0
End.bal.	0
Cost of Goods Sold
End.bal.	0