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: Cost	412,000
	Selling price (assume all sold on account)	638,000

Required:

Present 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 Present entries to record the following 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. (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 PAGE 1 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

Answer 1

No	Account titles & Explanations					Debit	Credit
a)	Raw materials					176,000
	Accounts payable						176,000
b)	prepaid expense					12,200
	Accounts payable						12,200
c)	work in process					153,700
	Factory overhead					2,700
	Raw materials						156,400
d)	work in process					141,300
	Factory overhead					12,000
	Wages payable						153,300
e)	factory overhead					37,000
	accumulated depreciation-factory equipment						37,000
f)	Factory overhead					6,100
	prepaid expense						6,100
g)	Factory overhead					76,000
	Accounts payable						76,000
h)	work in process					105,300
	Factory overhead						105,300
i)	Finished goods					415,300
	work in process						415,300
j)	cost of goods sold					412,000
	finished goods						412,000
	Accounts receivable					638,000
	sales						638,000