Question

Materials purchased on account, $770,000.
	2	Materials requisitioned, $680,000, of which $75,800 was for general factory use.
	31	Factory labor used, $756,000, of which $182,000 was indirect.
	31	Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.
	31	Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.
	31	Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.
	31	Factory overhead costs applied to jobs, $568,500.
	31	Jobs completed, $1,500,000.
	31	Cost of goods sold, $1,375,000. Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Answer 1

Solution:

Journal Entries:

Date	Description	Post Ref.	Debit ($)	Credit($)
March 1	Materials		770,000
	Accounts Payable			770,000
	(To record the materials purchased)
March 2	Factory overhead		75,800
	Work in process		604,200
	Materials			680,000
	(To record the materials requisition)
March 31	Work in process		574,000
	Factory overhead		182,000
	Wages Payable			756,000
	(To record the factory labor used)
March 31	Factory Overhead		245,000
	Selling Expenses		171,500
	Administrative Expenses		110,600
	Accounts Payable			527,100
	(To record the other costs)
March 31	Factory Overhead		24,500
	Selling Expenses		28,420
	Administrative Expenses		16,660
	Prepaid Expenses			69,580
	(To record the prepaid expenses)
March 31	Depreciation expenses - factory equipment		49,500
	Depreciation expense - office equipment		61,800
	Depreciation expense - office building		14,900
	Accumulated depreciation - Equipment and Building			126,200
	(To record the accumulated depreciation)
March 31	Work in process		568,500
	Factory overhead			568,500
	(To record the factory overhead costs applied to jobs)
March 31	Finished goods		1,500,000
	Work in process			1,500,000
	(To record the jobs completed)
March 31	Cost of goods sold		1,375,000
	Finished goods			1,375,000
	(To record the cost of goods sold)

* Please provide the chart of accounts for reference.