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, $260,000. |
| b. |
Paid $128,900 cash for factory wages. |
| c. |
Paid $15,250 cash to a computer consultant to reprogram factory equipment. |
| d. |
Materials requisitions record use of the following materials for the month. |
| |
|
|
|
| Job 136 |
$ |
48,500 |
|
| Job 137 |
|
33,000 |
|
| Job 138 |
|
19,800 |
|
| Job 139 |
|
22,800 |
|
| Job 140 |
|
7,200 |
|
| |
|
|
|
| Total direct materials |
|
131,300 |
|
| Indirect materials |
|
20,500 |
|
| |
|
|
|
| Total materials used |
$ |
151,800 |
|
| |
|
|
|
|
| e. |
Time tickets record use of the following labor for the month. |
| |
|
|
|
| Job 136 |
$ |
12,000 |
|
| Job 137 |
|
10,600 |
|
| Job 138 |
|
37,700 |
|
| Job 139 |
|
39,000 |
|
| Job 140 |
|
3,600 |
|
| |
|
|
|
| Total direct labor |
|
102,900 |
|
| Indirect labor |
|
26,000 |
|
| |
|
|
|
| Total |
$ |
128,900 |
|
| |
|
|
|
|
| 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 $545,000. |
| i. |
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 |
|
38,500 |
|
| Expired factory insurance |
|
11,000 |
|
| Accrued property taxes payable |
|
36,500 |
|
|
| 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.
|
2.
| Required: |
| 1. |
Prepare a job cost sheet for each job worked on during the month
|