Question

Barnes Company uses a job order cost system. The following data summarize the operations related to production for October: October 1 Materials purchased on account, $315,500. 2 Materials requisitioned, $290,100, of which $8,150 was for general factory use. 31 Factory labor used, $489,500, of which $34,200 was indirect. 31 Other costs incurred on account for factory overhead, $600,000; selling expenses, $150,000; and administrative expenses, $100,000. 31 Prepaid expenses expired for factory overhead were $18,000; for selling expenses, $6,000; and for administrative expenses, $5,000. 31 Depreciation of office building was $30,000; of office equipment, $7,500; and of factory equipment, $60,000. 31 Factory overhead costs applied to jobs, $711,600. 31 Jobs completed, $1,425,000. 31 Cost of goods sold, $1,380,000. Required: Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Answer 1

Date	Account Titles	Debit	Credit
Oct-01	Raw Material Inventory	$         315,500
	Accounts Payable		$       315,500
Oct-02	Work in Process Inventory	$         281,950
	Factory Overhead	$             8,150
	Raw Material Inventory		$       290,100
Oct-31	Work in Process Inventory	$         455,300
	Factory Overhead	$           34,200
	Factory Payroll / Wages Payable		$       489,500
Oct-31	Factory Overhead	$         600,000
	Selling Expenses	$         150,000
	Administrative expenses	$         100,000
	Accounts Payable		$       850,000
Oct-31	Factory Overhead	$           18,000
	Selling Expenses	$             6,000
	Administrative expenses	$             5,000
	Prepaid Expenses		$          29,000
Oct-31	Administrative expenses	$           37,500
	Accumulated Depreciation-Office Building		$          30,000
	Accumulated Depreciation-Office Equipment		$            7,500
	Factory Overhead	$           60,000
	Accumulated Depreciation-Factory Equipment		$          60,000
Oct-31	Work in Process Inventory	$         711,600
	Factory Overhead		$       711,600
Oct-31	Finished Goods Inventory	$      1,425,000
	Work in Process Inventory		$    1,425,000
Oct-31	Cost of Goods Sold	$      1,380,000
	Finished Goods Inventory		$    1,380,000