Question

1. Present entries to record the following summarized operations related to production for a company using a job order cost system:
   

   (a)	Materials purchased on account		$176,000
   (b)	Prepaid expenses incurred on account		12,200
   (c)	Materials requisitioned:
   	For production orders		153,700
   	For general factory use		2,700
   (d)	Factory labor used:
   	On production orders		141,300
   	For general factory purposes		12,000
   (e)	Depreciation on factory equipment		37,000
   (f)	Expiration of prepaid expenses, chargeable to factory		6,100
   (g)	Factory overhead costs incurred on account		76,000
   (h)	Factory overhead applied, based on machine hours		105,300
   (i)	Jobs finished		415,300
   (j)	Jobs shipped to customers:
   	Selling price (assume all sold on account)		638,000
   	Cost of goods sold		412,000

   If an amount box does not require an entry, leave it blank.

   a.	Accounts Payable Cash Factory Overhead Materials Work in Process
   	Accounts Payable Cash Factory Overhead Materials Work in Process
   b.	Accounts Payable Cash Factory Overhead Prepaid Expenses Work in Process
   	Accounts Payable Cash Factory Overhead Prepaid Expenses Work in Process
   c.	Accounts Payable Cash Materials Prepaid Expenses Work in Process
   	Accounts Payable Cash Factory Overhead Finished Goods Materials
   	Accounts Payable Cash Factory Overhead Materials Work in Process
   d.	Accounts Payable Cash Materials Wages Payable Work in Process
   	Cash Cost of Goods Sold Factory Overhead Materials Wages Payable
   	Accounts Payable Factory Overhead Materials Wages Payable Work in Process
   e.	Accumulated Depreciation-Factory Equipment Cost of Goods Sold Depreciation Expense Factory Equipment Factory Overhead
   	Accumulated Depreciation-Factory Equipment Cost of Goods Sold Depreciation Expense Factory Equipment Factory Overhead
   f.	Accounts Payable Cash Factory Overhead Prepaid Expenses Work in Process
   	Accounts Payable Cash Factory Overhead Prepaid Expenses Work in Process
   g.	Accounts Payable Cash Factory Overhead Materials Work in Process
   	Accounts Payable Cash Factory Overhead Materials Work in Process
   h.	Accounts Payable Cash Factory Overhead Materials Work in Process
   	Accounts Payable Cash Factory Overhead Materials Work in Process
   i.	Cash Cost of Goods Sold Factory Overhead Finished Goods Work in Process
   	Cash Cost of Goods Sold Factory Overhead Finished Goods Work in Process
   j. Sale	Accounts Receivable Cash Finished Goods Sales Work in Process
   	Accounts Receivable Cash Finished Goods Sales Work in Process
   Cost	Cash Cost of Goods Sold Factory Overhead Finished Goods Work in Process
   	Cash Cost of Goods Sold Factory Overhead Finished Goods Work in Process

Answer 1

	Account Title	Debit	Credit
a.	Materials	176000
	Accounts payable		176000
b.	Prepaid expenses	12200
	Accounts payable		12200
c.	Work in process	153700
	Factory overhead	2700
	Materials		156400
d.	Work in process	141300
	Factory overhead	12000
	Wages payable		153300
e.	Factory overhead	37000
	Accumulated Depreciation-Factory Equipment		37000
f.	Factory overhead	6100
	Prepaid expenses		6100
g.	Factory overhead	76000
	Accounts payable		76000
h.	Work in process	105300
	Factory overhead		105300
i.	Finished goods	415300
	Work in process		415300
j.	Accounts receivable	638000
	Sales revenue		638000
	Cost of goods sold	412000
	Finished goods		412000