Question

Entries for Costs in a Job Order Cost System

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

1. Materials purchased on account, $496,630
2. Materials requisitioned, $417,170, of which $54,230 was for general factory use
3. Factory labor used, $511,530, of which $97,190 was indirect
4. Other costs incurred on account for factory overhead, $119,190; selling expenses, $183,750; and administrative expenses, $109,260
5. Prepaid expenses expired for factory overhead, $22,840; for selling expenses, $19,370; and for administrative expenses, $13,910
6. Depreciation of office building was $66,550; of office equipment, $33,770; and of factory equipment, $22,840
7. Factory overhead costs applied to jobs, $283,080
8. Jobs completed, $655,550
9. Cost of goods sold, $635,690

Required:

Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $496,630.

Entry	Description	Debit	Credit
a.

b. Materials requisitioned, $417,170, of which $54,230 was for general factory use.

Entry	Description	Debit	Credit
b.

c. Factory labor used, $511,530, of which $97,190 was indirect.

Entry	Description	Debit	Credit
c.

d. Other costs incurred on account for factory overhead, $119,190; selling expenses, $183,750; and administrative expenses, $109,260.

Entry	Description	Debit	Credit
d.

e. Prepaid expenses expired for factory overhead, $22,840; for selling expenses, $19,370; and for administrative expenses, $13,910.

Entry	Description	Debit	Credit
e.

f. Depreciation of office building was $66,550; of office equipment, $33,770; and of factory equipment, $22,840.

Entry	Description	Debit	Credit
f.

g. Factory overhead costs applied to jobs, $283,080.

Entry	Description	Debit	Credit
g.

h. Jobs completed, $655,550.

Entry	Description	Debit	Credit
h.

i. Cost of goods sold, $635,690.

Entry	Description	Debit	Credit
i.

Answer 1

a	Materials	496630
	Accounts Payable		496630
b	Work in Process	362940
	Factory Overhead	54230
	Materials		417170
c	Work in Process	414340
	Factory Overhead	97190
	Wages Payable		511530
d	Factory Overhead	119190
	Selling Expenses	183750
	Administrative Expenses	109260
	Accounts Payable		412200
e	Factory Overhead	22840
	Selling Expenses	19370
	Administrative Expenses	13910
	Prepaid Expenses		56120
f	Depreciation Expense-Office Building	66550
	Depreciation Expense-Office Equipment	33770
	Factory Overhead	22840
	Accumulated Depreciation-Buildings and Equipment		123160
g	Work in Process	283080
	Factory Overhead		283080
h	Finished Goods	655550
	Work in Process		655550
i	Cost of Goods Sold	635690
	Finished Goods		635690