Question

Present entries to record the following summarized operations related to production for a company using a job order cost system:

(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

If an amount box does not require an entry, leave it blank.

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Sale

Next

Answer 1

Journal Entries:
S.no.	Accounts title and explanations					Debit $	Credit $
a	Raw material Inventory Dr.					176,000
	Accounts payable						176000
b.	Prepaid expense Dr.					12,200
	Accounts payable						12,200
c.	Work in process Inventory Dr.					153700
	Factory Overheads Dr.					2700
	Raw material Inventory						156400
d.	Work in process Inventory Dr.					141300
	Factory Overheads Dr.					12000
	Factory Wages						153300
e.	Factory Overheads Dr.					37000
	Accumulated Depreciation						37000
f.	Factory Overheads Account Dr.					6100
	Prepaid expense Account						6100
g.	Factory Overheads Account Dr.					76000
	Accounts payable						76000
h.	Work in process Inventory Dr.					105300
	Factory Overheads						105300
i.	Finished Goods Inventory Dr.					415300
	Work in process Inventory						415300
j.	Cost of Goods sold Dr.					412000
	Finished Goods Inventory						412000
	Accounts receivable Dr.					638000
	Sales revenue						638000