Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.

Problem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3

[The following information applies to the questions displayed below.]

Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.

a.	Purchased raw materials on credit, $240,000.
b.	Paid $128,600 cash for factory wages.
c.	Paid $15,500 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		32,000
Job 138		20,000
Job 139		22,400
Job 140		6,600
Total direct materials		129,500
Indirect materials		21,000
Total materials used	$	150,500

e.	Time tickets record use of the following labor for the month.

Job 136	$	12,300
Job 137		10,600
Job 138		38,100
Job 139		39,200
Job 140		3,400
Total direct labor		103,600
Indirect labor		25,000
Total	$	128,600

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	$	69,500
Depreciation of factory equipment		37,000
Expired factory insurance		11,000
Accrued property taxes payable		35,500

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.

Section Break

Problem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3

1.

award:
3 out of
3.00 points

Problem 19-3A Part 1

Required:
1.	Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.)

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials	$ 48,500	$ 32,000	$ 20,000	$ 22,400	$ 6,600
Labor	12,300	10,600	38,100	39,200	3,400
Overhead	24,600	21,200	76,200	78,400	6,800
Total cost	$ 85,400	$ 63,800	$ 134,300	$ 140,000	$ 16,800

Worksheet

Problem 19-3A Part 1

2.

award:
5.78 out of
6.00 points

Problem 19-3A Part 2

2.	Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. )

	General Journal	Debit	Credit
a.	Raw materials inventory	240,000
	Accounts payable		240,000
b.	Factory payroll	128,600
	Cash		128,600
c.	Factory overhead	15,500
	Cash		15,500
d.	Goods in process inventory
	Factory overhead
	Raw materials inventory		150,500
e.	Goods in process inventory
	Factory overhead
	Factory payroll		128,600
f.	Goods in process inventory	179,200
	Factory overhead		179,200
g.	Finished goods inventory	359,700
	Goods in process inventory		359,700
h.	Accounts receivable	545,000
	Sales		545,000
	Cost of goods sold	219,700
	Finished goods inventory		219,700
i.	Factory overhead	153,000
	Accum. depreciation-factory building
	Accum. depreciation-factory equipment
	Prepaid insurance
	Property taxes payable
j.	Goods in process inventory	77,200
	Factory overhead		77,200

Worksheet

Problem 19-3A Part 2

3.

award:
5.43 out of
6.00 points

Problem 19-3A Part 3

3.

Prepare 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. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

GENERAL LEDGER ACCOUNTS

Raw Materials Inventory

a.	240,000		d.	150,500
Bal.	89,500

Goods in Process Inventory

d.	129,500		g.	359,700
e.	103,600
f.	179,200
j.	77,200
Bal.	129,800

Finished Goods Inventory

g.	359,700		h.	219,700
Bal.	140,000

Factory Payroll

b.	128,600		e.	128,600
Bal.	0

Factory Overhead

c.	15,500		f.	179,200
d.	21,000		j.	77,200
e.	25,000
i.	153,000
Bal.	256,400

Cost of Goods Sold

h.	219,700
Bal.	219,700

Worksheet

Problem 19-3A Part 3

4.

award:
3 out of
3.00 points

Problem 19-3A Part 4

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. (Omit the "$" sign in your response.)

Reports of Job Costs
Goods in Process Inventory
Job 137	$ 63,800
Job 140	16,800
Balance	$ 80,600
Finished Goods Inventory
Job 139	$ 140,000
Balance	$ 140,000
Cost of Goods Sold
Job 136	$ 85,400
Job 138	134,300
Balance	$ 219,700