Question

please help me prepare journal entries to record the event and transactions a through i.

Required information [The following information applies to the questions displayed below) 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. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month Job 136 Job 137 Job 138 Job 139 Job 140 Total direct materials Indirect materials Total materials used $ 50,000 32,500 19,600 22,600 7,000 131,700 20,500 $152,200 C Paid $15,250 cash to a computer consultant to reprogram factory equipment d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12,200 10,600 38,100 39,000 3,400 103,300 26,500 $129,800 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods g. Sold Jobs 136 and 138 on credit at a total price of $550,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory Insurance)

Answer 1

Following are the journal entries for the transactions and events:

a. Debit " Raw material Inventory" with 220,000 $

Credit " Accounts Payable " with 220,000 $

Sice Raw material purchased on credit, accounts payable is credited.

For further entries, please go throught the following attachment.

Credit Account Title Work in Process Inventory Raw material Inventory Debit 131,700 This is consolidated entry. Work in Process Inventory Manufacturing Overheads Raw material Inventory 131,700 20,500 131,700 OR 152,200 20,500 Manufacturing Overheads Raw material Inventory 20,500 15,250 Manufacturing Overheads Cash 15,250 d For recoding use of labor: Work in Process Inventory Factory Payroll L 103,300 OR This is consolidated entry. Work in Process Inventory Manufacturing Overheads Factory Payroll 103,300 26,500 103,300 129,800 26,500 Manufacturing Overheads Factory Payroll 26,500 For Payment to labor: Factory Payroll Cash 129,800 129,800 Applied overheads to Jobs 136, 138, 139 Work in Process Inventory Manufacturing Overheads Cost Factory Payroll Overheads=Factory P.* 200% Job 136 12,200 24,400 Job 138 Job 139 38,100 39,000 76,200 | 78,000 Total 89,300 178,600 178,600 178,600 Total Transferred Finished Jobs Finished Goods Inventory Work in process Inventory 360,100 360,100 Cost Raw Material Factory Payroll Overheads Total Job 136 50,000 12,200 24,400 86,600 Job 138 19,600 38,100 76,200 133,900 Job 139 22,600 39,000 78,000 139,600 360,100 For recording sales Accounts Receivable Sales 550,000 550,000 Total For recording Cost Cost of Goods sold Finished Goods Inventory 220,500 Cost Raw Material Factory Payroll Overheads Total Job 136 50,000 12,200 24,400 86,600 Job 138 19,600 38,100 76,200 133,900 220,500 220,500 155,500 Manufacturing Overheads Cash Prepaid Insurance 144,500 11,000 Applied Overheads Work in Process Inventory Manufacturing Overheads 28,000 Cost Factory Payroll Overheads=Factory P.*200% Job 137 10,600 21,200 Job 140 3,400 6,800 Total 14,000 28,000 28,000 0,