Question

Journalize the entries to record the following summarized operations related to production for a company using a job order cost system: a. $176,000 12,200 C. 153,700 2,700 Materials purchased on account b. Prepaid expenses incurred on account Materials requisitioned: For production orders For general factory use d. Factory labor used: On production orders For general factory purposes Depreciation on factory equipment Expiration of prepaid expenses, chargeable to factory 9. Factory overhead costs incurred on account Factory overhead applied, based on machine hours Jobs finished 3. Jobs shipped to customers: Cost Selling price (assume all sold on account) If an amount box does not require an entry, leave it blank. 141,300 12,000 37,000 e. f. h. I. 6,100 76,000 105,300 415,300 412,000 638,000 a.

Answer 1

Credit Account Titles and Explanations a Material Inventory Accounts payable Debit $176,000 $176,000 $12,200 b Prepaid expenses Accounts payable $12,200 c Work in process Inventory Factory overhead account Material Inventory $153,700 $2,700 $156,400 d Work in process Inventory Factory overhead account Salaries and wages payable $141,300 $12,000 $153,300 $37,000 e Factory overhead Accumulated depreciation - Factory Equipment $37,000 $6,100 f Factory overhead Prepaid expenses $6,100 $76,000 & Factory overhead Accounts payable $76,000 h Work in process Factory overhead $105,300 $105,300 i Finished Goods Inventory Work in process Inventory $415,300 $415,300 $412,000 j Cost of goods sold Finished Goods Inventory $412,000 Sale Accounts receivable Sales $638,000 $638,000