Required information [The following information applies to thequestions displayed below.] Widmer Watercraft’s predeterminedoverhead rate for the year 2017 is 200% of direct labor.Information on the company’s production activities during May 2017follows. Purchased raw materials on credit, $200,000. Materialsrequisitions record use of the following materials for the month.Job 136 $49,500 Job 137 32,500 Job 138 20,000 Job 139 23,200 Job140 7,200 Total direct materials 132,400 Indirect materials 21,000Total materials used $153,400 Paid $15,250 cash to a computerconsultant to reprogram factory equipment. Time tickets record useof the following labor for the month. These wages were paid incash. Job 136 $12,100 Job 137 10,600 Job 138 37,700 Job 139 39,400Job 140 3,400 Total direct labor 103,200 Indirect labor 26,000Total $129,200 Applied overhead to Jobs 136, 138, and 139.Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136and 138 on credit at a total price of $550,000. The companyincurred the following overhead costs during the month (creditPrepaid Insurance for expired factory insurance). Depreciation offactory building $68,500 Depreciation of factory equipment 37,500Expired factory insurance 11,000 Accrued property taxes payable36,500 Applied overhead at month-end to the Work in ProcessInventory account (Jobs 137 and 140) using the predeterminedoverhead rate of 200% of direct labor cost. rev:02_01_2017_QC_CS-77139 3. Post the journal entries for thetransactions to the following T-accounts, each of which started themonth with a zero balance.
