Question

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

July	1	Materials purchased on account, $645,190.
	2	Materials requisitioned, $642,250, of which $72,680 was for general factory use.
	31	Factory labor used, $631,920, of which $91,350 was indirect.
	31	Other costs incurred on account for factory overhead, $153,030; selling expenses, $228,490; and administrative expenses, $150,890.
	31	Prepaid expenses expired for factory overhead, $29,630; for selling expenses, $26,950; and for administrative expenses, $17,150.
	31	Depreciation of office building was $88,610; of office equipment, $42,970; and of factory equipment, $31,120.
	31	Factory overhead costs applied to jobs, $373,200.
	31	Jobs completed, $966,650.
	31	Cost of goods sold, $848,470.

Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal entries:
Date	Accounts title and explanations					Debit $	Credit $
1-Jul	Raw material Inventory Account Dr.					645190
	Accounts payable						645190
2-Jul	Work in process inventory Account Dr.					569570
	Manufacturing Overheads Account Dr.					72680
	Raw material inventory						642250
31-Jul	Work in process inventory Account Dr.					540570
	Manufacturing Overheads Account Dr.					91350
	Factory Wages payable						631920
31-Jul	Manufacturing Overheads Account Dr.					153030
	Selling and admin Overheads Account Dr.					379380
	Accounts payable						532410
31-Jul	Manufacturing Overheads Account Dr.					29630
	Selling and admin Overheads Account Dr.					44100
	Prepaid expense Account						73730
31-Jul	Manufacturing Overheads Account Dr.					31120
	Selling and admin Overheads Account Dr.					131580
	Accumulated Depreciation						162700
31-Jul	Work in process Inventory Account Dr.					373200
	Manufacturing overheads Account						373200
31-Jul	Finished Goods inventory Account Dr.					966650
	Work in process inventory Account						966650
31-Jul	Cost of Goods sold Account Dr.					848470
	Finished Goods inventory Account						848470