Question

(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

	Required:
	Journalize entries to record the above summarized operations related to production for a company using a job order cost system. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 131 Materials 133 Work in Process 135 Factory Overhead 137 Finished Goods 141 Supplies 142 Prepaid Expenses 181 Land 190 Factory Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Insurance Expense 532 Utilities Expense 533 Office Supplies Expense 560 Depreciation Expense 590 Miscellaneous Expense 710 Interest Expense

Journalize entries to record the summarized operations related to production for a company using a job order cost system on December 31. Refer to the Chart of Accounts for exact wording of account titles.

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Answer 1

a	Materials	$176,000
	To Accounts payable		$176,000
	(Being material purchased on account)
b	Prepaid Expenses	$12,200
	To Accounts payable		$12,200
	(Being prepaid expenses incurred on account)
c	No Entry for placement of order
d	Wages Expense	153300
	To Cash		153300
	(Being wages expense paid)
e	Depreciation	$37,000
	To Accumulated depreciation		$37,000
	(Being depreciation on factory equipment)
f	Factory Expense	$6,100
	To Prepaid Expenses		$6,100
	(Being expiration of prepaid expenses)
g	Factory overhead	$76,000
	To Accounts payable		$76,000
	(Being journal entry for factory overhead)
h	Cost of Goods Sold	$105,300
	To Factory overhead		$105,300
	(being factory overhead applied)
i	Accounts Receivable	$638,000
	To Sales		$638,000
	(Being sale of goods)