Question

Instructions X 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, $645,190. 2 Materials requisitioned, $642,250, of which $72,680 was for general factory use. 31 Factory labor used, $631,920, of which $91,350 was indirect. 31 Other costs incurred on account for factory overhead, $153,030; selling expenses, $228,490; and administrative expenses, $150,890. 31 Prepaid expenses expired for factory overhead were $29,630; for selling expenses, $26,950; and for administrative expenses, $17,150. 31 Depreciation of office building was $88,610; of office equipment, $42,970; and of factory equipment, $31,120. Factory overhead costs applied to jobs, $373,200. 31

Answer 1

Credit $ Journal entries :- Date Accounts Title & Explanation 01-Jul Materials To Accounts Payable (Entry for recording of material purchased on account) Post Ref 131 210 Debit $ 6,45,190 6,45,190 5,69,570 72,680 02-Jul Work in process Factory overhead To Materials (Entry for issue of materials to production and general use) 133 131 6,42,250 31-Jul Work in process Factory overhead To Wages Payable (Entry for factory labor used) 132 133 251 5,40,570 91,350 6,31,920 31-Jul Factory overhead Selling expenses Administrative expenses To Accounts Payable (Entry for other costs incurred on account) 133 531 540 210 1,53,030 2,28,490 1,50,890 5,32,410 31-Jul Factory overhead Selling expenses Administrative expenses To Prepaid expense (Entry for Expiry of prepaid expenses) 133 531 540 29,630 26,950 17,150 143 73,730 31-Jul Depreciation expense - Office building Depreciation expense - Office equipment Factory overhead To Accumulated Depreciation - Building and Equipment (Entry for depreciation expense) 561 562 133 192 88,610 42,970 31,120 1,62,700 31-Jul Work in process To Factory overhead (Entry for factory overhead applied to jobs) 1323,73,200 133 3,73,200 9,66,650 31-Jul Finished goods To Work in process (Entry for Jobs completed) 132 9,66,650 8,48,470 31-Jul Cost of goods sold To Finished goods (Entry for Cost of goods sold) 510 134 8,48,470