Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities dur

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Watercraft S Predetermined Overhead Rate Is 200 Of Direct Labor Information On The Company S Production Activities Dur 1 (107.69 KiB) Viewed 39 times

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, $260,000. b. Materials requisitions record use of the following materials for the month. $ 50,000 Job 136 Job 137 33,500 Job 138. 19,600 22,800 Job 139 Job 140 6,800 Total direct materials 132,700 Indirect materials 20,500 Total materials requisitions $ 153,200 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,000 Job 137 10,700 Job 138 37,700 Job 139 39,000 Job 140 4,000 Total direct labor 103,400 24,500 Indirect labor Total labor cost $ 127,900 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 $535,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month.
va materials legi U c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,000 Job 137 10,700 Job 138. 37,700 Job 139. 39,000 Job 140 4,000 Total direct labor 103,400 Indirect labor 24,500 Total labor cost. $ 127,900 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 $535,000. 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 $ 69,000 Depreciation of factory equipment Expired factory insurance 37,500 11,000 36,000 Accrued property taxes payable i. 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. 2. Prepare journal entries to record the events and transactions a through i.