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Entries for Costs in a Job Order Cost System Velasco Co. uses a job order cost...

Entries for Costs in a Job Order Cost System

Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July:

  1. Materials purchased on account, $695,900
  2. Materials requisitioned, $584,560, of which $75,990 was for general factory use
  3. Factory labor used, $716,780, of which $136,190 was indirect
  4. Other costs incurred on account for factory overhead, $167,020; selling expenses, $257,480; and administrative expenses, $153,100
  5. Prepaid expenses expired for factory overhead, $32,010; for selling expenses, $27,140; and for administrative expenses, $19,490
  6. Depreciation of office building was $93,250; of office equipment, $47,320; and of factory equipment, $32,010
  7. Factory overhead costs applied to jobs, $396,660
  8. Jobs completed, $918,590
  9. Cost of goods sold, $890,750

Required:

Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $695,900.

Entry Description Debit Credit
a. fill in the blank fill in the blank
fill in the blank fill in the blank

b. Materials requisitioned, $584,560, of which $75,990 was for general factory use.

Entry Description Debit Credit
b. fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank

c. Factory labor used, $716,780, of which $136,190 was indirect.

Entry Description Debit Credit
c. fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank

d. Other costs incurred on account for factory overhead, $167,020; selling expenses, $257,480; and administrative expenses, $153,100.

Entry Description Debit Credit
d. fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank

e. Prepaid expenses expired for factory overhead, $32,010; for selling expenses, $27,140; and for administrative expenses, $19,490.

Entry Description Debit Credit
e. fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank

f. Depreciation of office building was $93,250; of office equipment, $47,320; and of factory equipment, $32,010.

Entry Description Debit Credit
f. fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank
fill in the blank fill in the blank

g. Factory overhead costs applied to jobs, $396,660.

Entry Description Debit Credit
g. fill in the blank fill in the blank
fill in the blank fill in the blank

h. Jobs completed, $918,590.

Entry Description Debit Credit
h. fill in the blank fill in the blank
fill in the blank fill in the blank

i. Cost of goods sold, $890,750.

Entry Description Debit Credit
i. fill in the blank fill in the blank
fill in the blank fill in the blank

Solutions

Expert Solution

Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $695,900.

Entry Description Debit Credit
a. Raw material 695900
Account payable 695900

b. Materials requisitioned, $584,560, of which $75,990 was for general factory use.

Entry Description Debit Credit
b. Work in process 508570
Manufacturing overhead 75990
Raw material 584560

c. Factory labor used, $716,780, of which $136,190 was indirect.

Entry Description Debit Credit
c. Work in process 580590
Manufacturing overhead 136190
Factory labor 716780

d. Other costs incurred on account for factory overhead, $167,020; selling expenses, $257,480; and administrative expenses, $153,100.

Entry Description Debit Credit
d. Manufacturing overhead 167020
Selling expense 257480
Administrative expense 153100
Account payable 577600

e. Prepaid expenses expired for factory overhead, $32,010; for selling expenses, $27,140; and for administrative expenses, $19,490.

Entry Description Debit Credit
e. Manufacturing overhead 32010
Selling expense 27140
Administrative expense 19490
Prepaid expense 78640

f. Depreciation of office building was $93,250; of office equipment, $47,320; and of factory equipment, $32,010.

Entry Description Debit Credit
f. Manufacturing overhead 32010
Selling and administrative expense 140570
Accumulated depreciation-Factory equipment 32010
Accumulated depreciation-Office building 93250
Accumulated depreciation-Office equipment 47320

g. Factory overhead costs applied to jobs, $396,660.

Entry Description Debit Credit
g. Work in process 396660
Manufacturing overhead 396660

h. Jobs completed, $918,590.

Entry Description Debit Credit
h. Finished goods 918590
Work in process 918590

i. Cost of goods sold, $890,750.

Entry Description Debit Credit
i. Cost of goods sold 890750
Finished goods 890750

ekkarill92 answered 1 year ago
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