Question

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, $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
	31	Factory overhead costs applied to jobs, $373,200
	31	Jobs completed, $966,650
	31	Cost of goods sold, $848,470

Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS
Munson 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 EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Office Building 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense

Journal

Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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Answer 1

Debit	Credit
July 1	Materials	645190
	Accounts Payable		645190
July 2	Work in Process	569570
	Factory Overhead	72680
	Materials		642250
31	Work in Process	540570
	Factory Overhead	91350
	Wages Payable		631920
31	Factory Overhead	153030
	Selling Expenses	228490
	Administrative Expenses	150890
	Accounts Payable		532410
31	Factory Overhead	29630
	Selling Expenses	26950
	Administrative Expenses	17150
	Prepaid Expenses		73730
31	Depreciation Expense-Office Building	88610
	Depreciation Expense-Office Equipment	42970
	Factory Overhead	31120
	Accumulated Depreciation-Buildings and Equipment		1627090
31	Work in Process	373200
	Factory Overhead		373200
31	Finished Goods	966650
	Work in Process		966650
31	Cost of goods sold	848470
	9Finished Goods 848470