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, $683,970
2. Materials requisitioned, $574,530, of which $74,690 was for general factory use
3. Factory labor used, $704,490, of which $133,850 was indirect
4. Other costs incurred on account for factory overhead, $164,150; selling expenses, $253,070; and administrative expenses, $150,470
5. Prepaid expenses expired for factory overhead, $31,460; for selling expenses, $26,670; and for administrative expenses, $19,150
6. Depreciation of office building was $91,650; of office equipment, $46,510; and of factory equipment, $31,460
7. Factory overhead costs applied to jobs, $389,860
8. Jobs completed, $902,840
9. Cost of goods sold, $875,480

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, $683,970.

Entry	Description	Debit	Credit
a.	Materials
	Accounts Payable

b. Materials requisitioned, $574,530, of which $74,690 was for general factory use.

Entry	Description	Debit	Credit
b.	Work in Process
	Factory Overhead
	Materials

c. Factory labor used, $704,490, of which $133,850 was indirect.

Entry	Description	Debit	Credit
c.	Work in Process
	Factory Overhead
	Wages Payable

d. Other costs incurred on account for factory overhead, $164,150; selling expenses, $253,070; and administrative expenses, $150,470.

Entry	Description	Debit	Credit
d.	Factory Overhead
	Selling Expenses
	Administrative Expenses
	Accounts Payable

e. Prepaid expenses expired for factory overhead, $31,460; for selling expenses, $26,670; and for administrative expenses, $19,150.

Entry	Description	Debit	Credit
e.	Factory Overhead
	Selling Expenses
	Administrative Expenses
	Prepaid Expenses

f. Depreciation of office building was $91,650; of office equipment, $46,510; and of factory equipment, $31,460.

Entry	Description	Debit	Credit
f.	Depreciation Expense-Office Building
	Depreciation Expense-Office Equipment
	Factory Overhead
	Accumulated Depreciation-Buildings and Equipment

g. Factory overhead costs applied to jobs, $389,860.

Entry	Description	Debit	Credit
g.	Work in Process
	Factory Overhead

h. Jobs completed, $902,840.

Entry	Description	Debit	Credit
h.	Finished Goods
	Work in Process

i. Cost of goods sold, $875,480.

Entry	Description	Debit	Credit
i.	Cost of Goods Sold
	Finished Goods