Question

Barnes Company uses a job order cost system. The following data summarize the operations related to production for October:

October	1	Materials purchased on account, $663,320.
	2	Materials requisitioned, $618,780, of which $71,310 was for general factory use.
	31	Factory labor used, $640,350, of which $88,200 was indirect.
	31	Other costs incurred on account for factory overhead, $140,430; selling expenses, $245,050; and administrative expenses, $145,440.
	31	Prepaid expenses expired for factory overhead were $30,100; for selling expenses, $27,880; and for administrative expenses, $18,590.
	31	Depreciation of office building was $86,490; of office equipment, $45,350; and of factory equipment, $30,880.
	31	Factory overhead costs applied to jobs, $365,760.
	31	Jobs completed, $1,017,410.
	31	Cost of goods sold, $911,220.

	Required:
	Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
CHART OF ACCOUNTS
Barnes Co.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Office Building 191 Office Equipment 192 Accumulated Depreciation-Buildings and Equipment LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue

Answer 1

Credits Journal entries :: Date Accounts Title & Explanation 01-Oct Materials To Accounts Payable (Entry for Materials purchased on account) Ref 131 210 Debit $ 663,320 663,320 547,470 71,310 02-Oct Work in process (618780-71310) 132 Factory overhead 133 To Materials 131 (Entry for Materials requisitioned for Production and General use) 618,780 552,150 88,200 31-Oct Work in process (640350-88200) 132 Factory overhead 133 To Wages Payable 251 (Entry for Factory labor used for Production and General use) 640,350 133 31-Oct Factory overhead Selling expenses Administrative expenses To Accounts Payable (Entry for Other costs incurred on account) 140,430 245,050 145,440 530,920 133 31-Oct Factory overhead Selling expenses Administrative expenses To Prepaid Expenses (Entry for Prepaid expenses expired) 30,100 27,880 18,590 143 76,570 31-Oct Depreciation -office building Depreciation -office equipment Factory overhead 133 To Accumulated Depreciation-Buildings and Equipment 192 (Entry for Depreciation on Office building and Office equipment) 86,490 45,350 30,880 162,720 365,760 31-Oct Work in process To Factory overhead (Entry for factory overhead costs applied to jobs) 132 133 365,760 1,017,410 31-Oct Finished Goods To Work in process (Entry for Jobs completed) 134 132 1,017,410 911,220 31-Oct Cost of goods sold To Finished Goods (Entry for Cost of goods sold) 134 911,220