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 $ 50,000
Job 137 33,500
Job 138 20,200
Job 139 23,200
Job 140 6,800
Total direct materials 133,700
Indirect materials 20,500
Total materials requisitions $ 154,200
Time tickets record use of the following labor for the month. These wages were paid in cash.
Job 136 $ 12,000
Job 137 10,700
Job 138 37,500
Job 139 39,000
Job 140 3,800
Total direct labor 103,000
Indirect labor 25,000
Total labor cost $ 128,000
Applied overhead to Jobs 136, 138, and 139.
Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
Sold Jobs 136 and 138 on credit at a total price of $530,000.
Recorded the cost of goods sold for Jobs 136 and 138.
Incurred the following actual other overhead costs during the month.
Depreciation of factory building $ 69,500
Depreciation of factory equipment 38,500
Expired factory insurance 10,000
Accrued property taxes payable 36,000
Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.
