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Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows.

1. Purchased raw materials on credit, $240,000.
2. Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		33,500
Job 138		19,600
Job 139		22,800
Job 140		6,600
Total direct materials		131,000
Indirect materials		21,000
Total materials used	$	152,000

3. Paid $15,250 cash to a computer consultant to reprogram factory equipment.
4. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$	12,100
Job 137		10,600
Job 138		38,100
Job 139		39,000
Job 140		3,400
Total direct labor		103,200
Indirect labor		26,000
Total	$	129,200

5. Applied overhead to Jobs 136, 138, and 139.
6. Transferred Jobs 136, 138, and 139 to Finished Goods.
7. Sold Jobs 136 and 138 on credit at a total price of $545,000.
8. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		37,000
Expired factory insurance		12,000
Accrued property taxes payable		37,000

9. 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.

rev: 08_17_2017_QC_CS-95840

Required:
1. Prepare a job cost sheet for each job worked on during the month.

Answer 1

prepare job cost sheet for each job worked on during the month

Particular	job 136	job 137	job 138	job 139	job 140
Direct material	48500	33500	19600	22800	6600
Direct labour	12100	10600	38100	39000	3400
Overheads(200%on direct labour)	24200	21200	76200	78000	6800
Total Manufacturing cost	84800	65300	133900	139800	16800
Cost of units transferred to Finished goods	84800	0	133900	139800	0

Job 137 and 140 are still work in process

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