Question

24. Journalize the 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: Cost	412,000
	Selling price (assume all sold on account)	638,000

Answer 1

Journal Entries:
S.no.	Accounts title and explanations		Debit $	Credit $
a	Raw material Inventory		176,000
	Accounts payable			176000
b.	Prepaid expense		12,200
	Accounts payable			12,200
c.	Work in process Inventory		153700
	Factory Overheads		2700
	Raw material Inventory			156400
d.	Work in process Inventory		141300
	Factory Overheads		12000
	Factory Wages			153300
e.	Factory Overheads		37000
	Accumulated Depreciation equipment			37000
f.	Factory Overheads		6100
	Prepaid expenses			6100
g.	Factory Overheads		76000
	Accounts payable			76000
h.	Work in process Inventory		105300
	Factory Overheads			105300
i.	Finished Goods Inventory		415300
	Work in process Inventory			415300
j.	Cost of Goods sold		412000
	Finished Goods Inventory			412000
	Accounts receivable		638000
	Sales revenue			638000