Widmer Watercraft’s predetermined overhead rate for year 2013 is 200% of direct labor. Information on the company’s production activities during May 2013 follows.
a. Purchased raw materials on credit, $ 200,000.
b. Paid $ 126,000 cash for factory wages.
c. Paid $ 15,000 cash to a computer consultant to reprogram factory equipment.
d. Materials requisitions record use of the following materials for the month.

Job 136 . . . . . . . . . . . . . . . . . . . . $ 48,000
Job 137 . . . . . . . . . . . . . . . . . . . . 32,000
Job 138 . . . . . . . . . . . . . . . . . . . . 19,200
Job 139 . . . . . . . . . . . . . . . . . . . . 22,400
Job 140 . . . . . . . . . . . . . . . . . . . . 6,400
Total direct materials . . . . . . . . . 128,000
Indirect materials . . . . . . . . . . . . 19,500
Total materials used . . . . . . . . . . $ 147,500
e. Time tickets record use of the following labor for the month.
Job 136 . . . . . . . . . . . . . . . . $ 12,000
Job 137 . . . . . . . . . . . . . . . . 10,500
Job 138 . . . . . . . . . . . . . . . . 37,500
Job 139 . . . . . . . . . . . . . . . . 39,000
Job 140 . . . . . . . . . . . . . . . . 3,000
Total direct labor . . . . . . . . 102,000
Indirect labor . . . . . . . . . . . . 24,000
Total . . . . . . . . . . . . . . . . . . $ 126,000
f. Applied overhead to Jobs 136, 138, and 139.
g. Transferred Jobs 136, 138, and 139 to Finished Goods.
h. Sold Jobs 136 and 138 on credit at a total price of $ 525,000.
i. 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 . . . . . . . . 36,500
Expired factory insurance . . . . . . . . . . . . . . . . 10,000
Accrued property taxes payable . . . . . . . . . . . 35,000
j. Applied overhead at month- end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Required
1. Prepare a job cost sheet for each job worked on during the month. Use the following simplified form.
Job No. __________
Materials . . . . . . . . . $ __________
Labor . . . . . . . . . . . . __________
Overhead . . . . . . . . __________
Total cost . . . . . . . . $__________

2. Prepare journal entries to record the events and transactions a through j.
3. Set up T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory; Goods in Process Inventory; Finished Goods Inventory; Factory Payroll; Factory Overhead; Cost of Goods Sold. Then post the journal entries to these T-accounts and determine the balance of each account.
4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.