19-5

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, $590,100

Materials requisitioned, $495,680, of which $64,440 was for general factory use

Factory labor used, $607,800, of which $115,480 was indirect

Other costs incurred on account for factory overhead, $141,620; selling expenses, $218,340; and administrative expenses, $129,820

Prepaid expenses expired for factory overhead, $27,140; for selling expenses, $23,010; and for administrative expenses, $16,520

Depreciation of office building was $79,070; of office equipment, $40,130; and of factory equipment, $27,140

Factory overhead costs applied to jobs, $336,360

Jobs completed, $778,930

Cost of goods sold, $755,330

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, $590,100.

Entry	Description	Debit	Credit
a.	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessMaterials	fill in the blank 2
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessAccounts Payable		fill in the blank 4

b. Materials requisitioned, $495,680, of which $64,440 was for general factory use.

Entry	Description	Debit	Credit
b.	Accounts PayableCashCost of Goods SoldFinished GoodsMaterialsWork in ProcessWork in Process	fill in the blank 6	fill in the blank 7
	Administrative ExpensesCashFactory OverheadFinished GoodsMaterialsSelling ExpensesFactory Overhead	fill in the blank 9	fill in the blank 10
	Finished GoodsCashCost of Goods SoldFactory OverheadMaterialsWork in ProcessMaterials	fill in the blank 12	fill in the blank 13

c. Factory labor used, $607,800, of which $115,480 was indirect.

Entry	Description	Debit	Credit
c.	Accounts PayableCashFinished GoodsMaterialsWages PayableWork in ProcessWork in Process	fill in the blank 15	fill in the blank 16
	Accounts PayableCashCost of Goods SoldFinished GoodsFactory OverheadWages PayableFactory Overhead	fill in the blank 18	fill in the blank 19
	Accounts PayableCashCost of Goods SoldFactory OverheadWages PayableWork in ProcessWages Payable	fill in the blank 21	fill in the blank 22

d. Other costs incurred on account for factory overhead, $141,620; selling expenses, $218,340; and administrative expenses, $129,820.

Entry	Description	Debit	Credit
d.	Accounts PayableAccounts ReceivableCashFactory OverheadMaterialsPrepaid ExpensesFactory Overhead	fill in the blank 24	fill in the blank 25
	Accounts PayableCashCost of Goods SoldFinished GoodsSelling ExpensesWork in ProcessSelling Expenses	fill in the blank 27	fill in the blank 28
	Accounts PayableAdministrative ExpensesCashFinished GoodsMaterialsWork in ProcessAdministrative Expenses	fill in the blank 30	fill in the blank 31
	Administrative ExpensesAccounts PayableAccounts ReceivableCashFactory OverheadSelling ExpensesSelling Expenses	fill in the blank 33	fill in the blank 34

e. Prepaid expenses expired for factory overhead, $27,140; for selling expenses, $23,010; and for administrative expenses, $16,520.

Entry	Description	Debit	Credit
e.	Accounts ReceivableCashFactory OverheadFinished GoodsPrepaid ExpensesWork in ProcessFactory Overhead	fill in the blank 36	fill in the blank 37
	CashCost of Goods SoldFinished GoodsMaterialsPrepaid ExpensesSelling ExpensesSelling Expenses	fill in the blank 39	fill in the blank 40
	Accounts PayableAdministrative ExpensesCashFinished GoodsPrepaid ExpensesWork in ProcessAdministrative Expenses	fill in the blank 42	fill in the blank 43
	Accounts ReceivableAdministrative ExpensesCashFactory OverheadPrepaid ExpensesSelling ExpensesPrepaid Expenses	fill in the blank 45	fill in the blank 46

f. Depreciation of office building was $79,070; of office equipment, $40,130; and of factory equipment, $27,140.

Entry	Description	Debit	Credit
f.	Accounts PayableAccumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office BuildingFinished GoodsWork in ProcessDepreciation Expense-Office Building	fill in the blank 48	fill in the blank 49
	Accounts PayableAccumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office EquipmentFinished GoodsMaterialsDepreciation Expense-Office Equipment	fill in the blank 51	fill in the blank 52
	Accumulated Depreciation-Buildings and EquipmentCashCost of Goods SoldFactory OverheadFinished GoodsWork in ProcessFactory Overhead	fill in the blank 54	fill in the blank 55
	Accumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory OverheadFinished GoodsAccumulated Depreciation-Buildings and Equipment	fill in the blank 57	fill in the blank 58

g. Factory overhead costs applied to jobs, $336,360.

Entry	Description	Debit	Credit
g.	Accounts ReceivableCashFactory OverheadFinished GoodsMaterialsWork in ProcessWork in Process	fill in the blank 60
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessFactory Overhead		fill in the blank 62

h. Jobs completed, $778,930.

Entry	Description	Debit	Credit
h.	Accounts PayableCashCost of Goods SoldFinished GoodsMaterialsWork in ProcessFinished Goods	fill in the blank 64
	Accounts ReceivableAccounts PayableCashFactory OverheadFinished GoodsWork in ProcessWork in Process		fill in the blank 66

i. Cost of goods sold, $755,330.

Entry	Description	Debit	Credit
i.	Accounts ReceivableCashCost of Goods SoldFinished GoodsFactory OverheadWork in ProcessCost of Goods Sold	fill in the blank 68
	Accounts PayableAccounts ReceivableCashCost of Goods SoldFinished GoodsMaterialsFinished Goods		fill in the blank 70