Reference no: EM132819690

Question - Widmer Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows.

-Purchased raw materials on credit, $240,000.

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

Job 136$48,000 Job 137 32,500 Job 138 20,200 Job 139 23,200 Job 140 6,600 Total direct materials 130,500

Indirect materials 20,000 Total materials used$150,500

-Paid $15,250 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 10,500 Job 138 37,500 Job 139 39,000 Job 140 3,400 Total direct labor 102,400 Indirect labor 24,000 Total$126,400

-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 $530,000.

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

Depreciation of factory building$69,000 Depreciation of factory equipment 37,000 Expired factory insurance 12,000 Accrued property taxes payable 37,000

-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.4. Prepare an report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.