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, $635,470 2 Materials requisitioned, $628,070, of which $74,070 was for general factory use 31 Factory labor used, $674,350, of which $94,570 was indirect 31 Other costs incurred on account for factory overhead, $151,200; selling expenses, $228,420; and administrative expenses, $152,810 31 Prepaid expenses expired for factory overhead, $27,820; for selling expenses, $28,010; and for administrative expenses, $18,240 31 Depreciation of office building was $81,480; of office equipment, $43,370; and of factory equipment, $31,020 31 Factory overhead costs applied to jobs, $363,480 31 Jobs completed, $992,960 31 Cost of goods sold, $885,860 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	Particular	Credit	Debit
July 1	Material Inventory	$635,470
	Accounts payable		$635,470
July 2	Work in process	$554,000
	Factory overhead	$74,070
	Raw material inventory		$628,070
July 31	Work in process	$579,780
	Factory overhead	$94,570
	Wages payable		$674,350
July 31	Factory overhead	151,200
	Selling overhead	$228,420
	Administrative overhead	$152,810
	Accounts payable		$532,430
July 31	Factory overhead	$27,820
	Selling overhead	$28,010
	Administrative overhead	$18,240
	Prepaid expenses		$74,070
July 31	Depreciation office building	$81,480
	Depreciation office equipment	$43,370
	Factory overhead	$31,020
	Accumulated depreciation		$155,870
July 31	Work in process	$363,480
	Factory overhead		$363,480
July 31	Finished goods	$992,960
	Work in process		$992,960
July 31	Cost of good sold	$885,860
	Finished goods		$885,860