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: Materials purchased on account, $803,700 Materials requisitioned, $675,110, of which $87,760 was for general factory use Factory labor used, $827,810, of which $157,280 was indirect Other costs incurred on account for factory overhead, $192,890; selling expenses, $297,370; and administrative expenses, $176,810 Prepaid expenses expired for factory overhead, $36,970; for selling expenses, $31,340; and for administrative expenses, $22,500 Depreciation of office building was $107,700; of office equipment, $54,650; and of factory equipment, $36,970 Factory overhead costs applied to jobs, $458,110 Jobs completed, $1,060,880 Cost of goods sold, $1,028,740 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, $803,700. Entry Description Debit Credit a. b. Materials requisitioned, $675,110, of which $87,760 was for general factory use. Entry Description Debit Credit b. c. Factory labor used, $827,810, of which $157,280 was indirect. Entry Description Debit Credit c. d. Other costs incurred on account for factory overhead, $192,890; selling expenses, $297,370; and administrative expenses, $176,810. Entry Description Debit Credit d. e. Prepaid expenses expired for factory overhead, $36,970; for selling expenses, $31,340; and for administrative expenses, $22,500. Entry Description Debit Credit e. f. Depreciation of office building was $107,700; of office equipment, $54,650; and of factory equipment, $36,970. Entry Description Debit Credit f. g. Factory overhead costs applied to jobs, $458,110. Entry Description Debit Credit g. h. Jobs completed, $1,060,880. Entry Description Debit Credit h. i. Cost of goods sold, $1,028,740. Entry Description Debit Credit i.

Answer 1

Entry	Account titles and explanation	debit	credit
A	Materials	803,700
	Accounts Payable		803,700
B	Work in Process	587350
	Factory Overhead	87,760
	Materials		675,110
C	Work in Process	670530
	Factory Overhead	157,280
	Wages Payable		827,810
D	Factory Overhead	192890
	Selling Expenses	297370
	Administrative Expenses	176810
	Accounts Payable		667070
E	Factory Overhead	36970
	Selling Expenses	31340
	Administrative Expenses	22500
	Prepaid Expenses		90810
F	Depreciation Expense – Office Building	107,700
	Depreciation Expense – Office Equipment	54,650
	Factory Overhead	36,970
	Accumulated Depreciation – Buildings and Equipment		199320
G	Work in Process	458,110
	Factory overhead		458,110
H	Finished Goods	1,060,880
	Work in Process		1,060,880
I	Cost of Goods Sold	1,028,740
	Finished Goods		1,028,740