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 - $219000

B. Prepaid expenses paid by cash - $12,200

C. Materials requisitioned:

For production orders - $153,700

For general factory use - $2,700

D. Company labor for month:?
Direct Labor - 141300
Indirect Factory Labor-12000
Sales Salaries-8000

Office Salaries-5000
E. Depreciation on factory equipment - $37,000

F. Expiration of prepaid expenses, Chargeable to factory - $6,100

G. Factory overhead costs incurred on account - $67,000

H. Factory overhead applied at 135% of direct labor - ?

I. Jobs finished - $415,300

J. Jobs shipped to customers: cost, $412,000;

Selling price - $638,000

Answer 1

Journal Entries
Events	Particulars			Debit	Credit
A)	Materials			$ 219,000.00
	To Accounts Payable				$ 219,000.00
B)	Prepaid Expense			$   12,200.00
	To Cash				$   12,200.00
C)	WIP			$ 153,700.00
	Factory OH			$     2,700.00
	To Materials				$ 156,400.00
D)	WIP			$ 141,300.00
	Factory OH			$   12,000.00
	Sales Salaries			$     8,000.00
	Office Salaries			$     5,000.00
	To Wages Payable				$ 166,300.00
E)	Factory OH			$   37,000.00
	To Accumulated Depreciation				$   37,000.00
F)	Factory OH			$     6,100.00
	To Prepaid Expense				$     6,100.00
G)	Factory OH			$   67,000.00
	To Accounts Payable				$   67,000.00
H)	WIP			$ 190,755.00
	To Factory OH				$ 190,755.00
	($ 141300 x 135%)
I)	Finished Goods			$ 415,300.00
	To WIP				$ 415,300.00
J)	Cost of Goods sold			$ 412,000.00
	To Finished Goods				$ 412,000.00
	Accounts Receivable			$ 638,000.00
	To Sales				$ 638,000.00