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.

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

Journal entries are as follows:

Date	Account and Explanation	Debit($)	Credit($)
October 1	Materials	315,500
	Accounts Payable		315,500
	(Recorded the materials purchased on account)
October 2	Work in Process	281,950
	Factory Overhead	8,150
	Materials		290,100
	(Recorded the work in process and factory Overhead)
October 31	Work in Process	455,300
	Factory Overhead	34,200
	Wages Payable		489,500
	(Recorded the work in process and factory overhead )
October 31	Factory Overhead	600,000
	Selling Expenses	150,000
	Administrative Expenses	100,000
	Accounts Payable		850,000
	(Recorded the all the expenses)
October 31	Factory Overhead	18,000
	Selling Expenses	6,000
	Administrative Expenses	5,000
	Prepaid Expenses		29,000
	(Recorded the all the prepaid expenses)
October 31	Depreciation Expense-Office Building	30,000
	Depreciation Expense-Office Equipment	7,500
	Depreciation Expense- Factory Equipment	60,000
	Accumulated Depreciation		97,500
	(Recorded the accumulated depreciation)
October 31	Work in Process	711,600
	Factory Overhead		711,600
	(Recorded the factory overhead)
October 31	Finished Goods	1,425,000
	Work in Process		1,425,000
	(Recorded the finished goods)
October 31	Cost of goods sold	1,380,000
	Finished Goods		1,380,000
	(Recorded the cost of goods sold )