Answer:
<em><u>Widmer Watercraft</u></em>
<em><u>Journal Entries</u></em>
Sr No                      Particulars                 Debit                   Credit
a.                      Materials                    $200,000 
                      Accounts Payable                                         $ 200,000
Purchased raw materials on credit, $200,000.
b.             Work in Process Job 136        $ 48,000
               Work in Process Job 137            32,000
                Work in Process Job 138           19,200
               Work in Process Job 139           22,400
                 Work in Process Job 140           6,400 
                                        Materials                                      $  128,000   
Total direct materials 128,000 issued.
            Factory Overhead Control Account  19,500
                                     Materials                                      $  19,500   
Indirect materials 19,500 issued.
c.                  Factory Overhead- Equip       15,000
                                      Cash                                          15000     
Paid $15,000 cash to a computer consultant to reprogram factory equipment.
d.              Work in Process Job 136      $12,000
                 Work in Process  Job 137      10,500
                  Work in Process Job 138      37,500
                  Work in Process Job 139      39,000
                 Work in Process  Job 140       3,000      
        Factory Overhead Control Account  24,000
                     Wages Control Account                                $ 126,000
Total direct labor 102,000 charged to production, Indirect labor 24,000  Charged to  Factory Overhead.
e.                Work In Process Job 136      $24,000
                   Work in Process Job 138      75,000
                  Work in Process Job 139      78,000
                 Applied Overhead                                           255,000
Applied overhead to Jobs 136, 138, and 139 at 200% of Direct Labor Cost.
          Applied Overhead Control Account  $ 255,000 
                Factory Overhead Control Account                   $ 255,000
Applied Overhead Closed To Actual Overhead Account.
f.          Finished Goods Control  Account       $ 355,100
                                    Work in Process Job 136                  84000
                                    Work in Process Job 138                 131,700
                                      Work in Process Job 139              139,400
Transferred Jobs 136, 138, and 139 to Finished Goods.
g.                    Cost of Goods Sold          215,700
                       Finished Goods                                      215,700
Sold Jobs 136 and 138 on credit at a total price of $525,000.
                    Accounts Receivable          $525,000                 
                                       Sales                                   $525,000
h.       Factory Overhead Control Account $ 149,500
                Provision For Depreciation Account            $68,000 
                Prepaid Insurance Expense                           $ 10,000 
     Accumulated Depreciation Factory Equip.             36,500 
            Property Taxes Payable Account                      35,000
The company incurred the above overhead costs during the month.
i.          Work in Process  Job 136       21,000    
               Work in Process  Job 140       6,000    
                Factory Overhead Control Account              27,000
 Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% .