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 a. Materials purchased on account, $585,610 b. Materials requisitioned, $491,910, of which $63,950 was for general factory use c. Factory labor used, $603,180, of which $114,600 was indirect d. Other costs incurred on account for factory overhead, $140,550; selling expenses, $216,680; and administrative expenses, $128,830 e. Prepaid expenses expired for factory overhead, $26,940; for selling expenses, $22,840; and for administrative expenses, $16,400 f. Depreciation of office building was $78,470; of office equipment, $39,820; and of factory equipment, $26,940 9. Factory overhead costs applied to jobs, $333,800 h. Jobs completed, $773,010 I. Cost of goods sold, $749,580 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. Credit a. Materials purchased on account, $585,610. Entry Description Debit a. Materials 585,610 Accounts Payable 585,610 b. Materials requisitioned, $491,910, of which $63,950 was for general factory use. Entry Description Debit Credit b. Work in Process Factory Overhead ✓ Materials C. Factory labor used, $603,180, of which $114,600 was indirect. Entry Description Debit Credit c. Work in Process Factory Overhead Wages Payable

Answer 1

Journal Entries:

Entry	Description	Debit	Credit
a)	Materials	$585,610
	Accounts Payable		$585,610
	(To record the purchase of materials on account)
b)	Work-in Process Inventory ($491,910 - $63,950)	$427,960
	Factory Overhead	$63,950
	Materials		$491,910
	(To record the requisition of direct materials and indirect materials)
c)	Work-in Process Inventory ($603,180 - $114,600)	$488,580
	Factory Overhead	$114,600
	Wages Payable		$603,180
	(To record direct labor and indirect labor used in production)
d)	Factory Overhead	$140,550
	Selling Expenses	$216,680
	Administrative Expenses	$128,830
	Accounts Payable ($140,550 + $216,680 + $128,830)		$486,060
	(To record the costs incurred on account)
e)	Factory Overhead	$26,940
	Selling Expenses	$22,840
	Administrative Expenses	$16,400
	Prepaid Expenses ($26,940 + $22,840 + $16,400)		$66,180
	(To record the expiry of prepaid expenses)
f)	Depreciation Expense - Office Building	$78,470
	Depreciation Expense - Office Equipment	$39,820
	Factory Overhead	$26,940
	Accumulated Depreciation - Buildings and Equipment ($78,470 + $39,820 + $26,940)		$145,230
	(To record the depreciation expense)
g)	Work-in Process Inventory	$333,800
	Factory Overheads		$333,800
	(To record the application of factory overheads to jobs)
h)	Finished Goods Inventory	$773,010
	Work-in Process Inventory		$773,010
	(To record the completion of jobs)
i)	Cost of Goods Sold	$749,580
	Finished Goods Inventory		$749,580
	(To record the cost of goods sold)