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. 1. Materials purchased on account, $574,320
   2. Materials requisitioned, $482,430, of which $62,720 was for general factory use
   3. Factory labor used, $591,550, of which $112,390 was indirect
   4. Other costs incurred on account for factory overhead, $137,840; selling expenses, $212,500; and administrative expenses, $126,350
   5. Prepaid expenses expired for factory overhead, $26,420; for selling expenses, $22,400; and for administrative expenses, $16,080
   6. Depreciation of office building was $76,960; of office equipment, $39,050; and of factory equipment, $26,420
   7. Factory overhead costs applied to jobs, $327,360
   8. Jobs completed, $758,100
   9. Cost of goods sold, $735,130

   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, $574,320.

   Entry	Description	Debit	Credit
   a.

   b. Materials requisitioned, $482,430, of which $62,720 was for general factory use.

   Entry	Description	Debit	Credit
   b.

   c. Factory labor used, $591,550, of which $112,390 was indirect.

   Entry	Description	Debit	Credit
   c.

   d. Other costs incurred on account for factory overhead, $137,840; selling expenses, $212,500; and administrative expenses, $126,350.

   Entry	Description	Debit	Credit
   d.

   e. Prepaid expenses expired for factory overhead, $26,420; for selling expenses, $22,400; and for administrative expenses, $16,080.

   Entry	Description	Debit	Credit
   e.

   f. Depreciation of office building was $76,960; of office equipment, $39,050; and of factory equipment, $26,420.

   Entry	Description	Debit	Credit
   f.

   g. Factory overhead costs applied to jobs, $327,360.

   Entry	Description	Debit	Credit
   g.

   h. Jobs completed, $758,100.

   Entry	Description	Debit	Credit
   h.

   i. Cost of goods sold, $735,130.

   Entry	Description	Debit	Credit
   i.

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