Question

Journalize the 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 12,200 b. C. Prepaid expenses incurred on account Materials requisitioned: For production orders For general factory use Factory labor used: On production orders 153,700 2,700 d. For general factory purposes 141,300 12,000 37,000 6,100 76,000 e. f. g. h. i. j. Depreciation on factory equipment Expiration of prepaid expenses, chargeable to factory Factory overhead costs incurred on account Factory overhead applied, based on machine hours Jobs finished Jobs shipped to customers: Cost Selling price (assume all sold on account) 105,300 415,300 412,000 638,000 If an amount box does not require an entry, leave it blank.

Answer 1

Credit Transaction General journal Materials Accounts payable Debit $ 176,000.00 $ 176,000.00 (To Record purchase on account) $ 12,200.00 Prepaid expense Accounts payable $ 12,200.00 (To Record incur of prepaid expense) Work in process Factory overhead Materials $ 153,700.00 $ 2,700.00 $ 156,400.00 (To Record material Requisitioned) Work in process Factory overhead Wages payable $ 141,300.00 $ 12,000.00 $ 153,300.00 (To Record Factory labour used) $ 37,000.00 Factory overhead Accumulated depreciation - Factory equipment $ 37,000.00 (To Record depreciation) $ 6,100.00 Factory overhead Prepaid expense $ 6,100.00 (To Record prepaid expense charge against FOH) $ 76,000.00 Factory overhead Accounts payable $ 76,000.00 (To Record FOH Incurred) $ 105,300.00 Work in process Factory overhead $ 105,300.00 (To Record FOH Applied) $ 415,300.00 Finished Goods Work in process $ 415,300.00 (To Record Jobs finished) $ 412,000.00 Cost of goods sold Finished goods $ 412,000.00 (To Record cost of goods sold) Sale $638,000.00 Accounts receivable Sales $638,000.00 (To Record sale)