Question

Entries for Costs in a Job Order Cost System

Munson Co. uses a job order cost system. The following data summarize the operations related to production for July:

1. Materials purchased on account, $619,830
2. Materials requisitioned, $520,660, of which $67,690 was for general factory use
3. Factory labor used, $638,420, of which $121,300 was indirect
4. Other costs incurred on account for factory overhead, $148,760; selling expenses, $229,340; and administrative expenses, $136,360
5. Prepaid expenses expired for factory overhead, $28,510; for selling expenses, $24,170; and for administrative expenses, $17,360
6. Depreciation of office building was $83,060; of office equipment, $42,150; and of factory equipment, $28,510
7. Factory overhead costs applied to jobs, $353,300
8. Jobs completed, $818,180
9. Cost of goods sold, $793,380

Required:

Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $619,830.

Entry	Description	Debit	Credit
a.

b. Materials requisitioned, $520,660, of which $67,690 was for general factory use.

Entry	Description	Debit	Credit
b.

c. Factory labor used, $638,420, of which $121,300 was indirect.

Entry	Description	Debit	Credit
c.

d. Other costs incurred on account for factory overhead, $148,760; selling expenses, $229,340; and administrative expenses, $136,360.

Entry	Description	Debit	Credit
d.

e. Prepaid expenses expired for factory overhead, $28,510; for selling expenses, $24,170; and for administrative expenses, $17,360.

Entry	Description	Debit	Credit
e.

f. Depreciation of office building was $83,060; of office equipment, $42,150; and of factory equipment, $28,510.

Entry	Description	Debit	Credit
f.

g. Factory overhead costs applied to jobs, $353,300.

Entry	Description	Debit	Credit
g.

h. Jobs completed, $818,180.

Entry	Description	Debit	Credit
h.

i. Cost of goods sold, $793,380.

Entry	Description	Debit	Credit
i.

Answer 1