Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during...
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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, $240,000. 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 $ 48,500 33,500 20,200 22,600 7,000 131,800 19,500 $ 151,300 c. 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 37,900 Job 139 39,600 Job 140 3,800 Total direct labor 104, 200 Indirect labor 26,500 Total labor cost $ 130,700 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 $550,000. 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 $ 69,500 37,000 11,000 37,000 2. Prepare journal entries to record the events and transactions a through i. View transaction list Journal entry worksheet < 1 2 Record raw material purchases on credit. Note: Enter debits before credits. Transaction General Journal Debit 11 Credit 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, $240,000. 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 $ 48,500 33,500 20,200 22,600 7,000 131,800 19,500 $ 151,300 c. 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 37,900 Job 139 39,600 Job 140 3,800 Total direct labor 104, 200 Indirect labor 26,500 Total labor cost $ 130,700 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 $550,000. 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 $ 69,500 37,000 11,000 37,000 2. Prepare journal entries to record the events and transactions a through i. View transaction list Journal entry worksheet < 1 2 Record raw material purchases on credit. Note: Enter debits before credits. Transaction General Journal Debit 11 Credit
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Answer rating: 100% (QA)
a Record raw material purchases on credit Transaction Raw material purchases on credit General Journal Debit Raw Materials Inventory 240000 Credit Acc... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Posted Date:
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