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Entries for Costs in a Job Order Cost System Velasco Co. uses a job order cost system. The following data summarize the operations related to

Entries for Costs in a Job Order Cost System

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

Materials purchased on account, $771,760

Materials requisitioned, $648,280, of which $84,280 was for general factory use

Factory labor used, $794,910, of which $151,030 was indirect

Other costs incurred on account for factory overhead, $185,220; selling expenses, $285,550; and administrative expenses, $169,790

Prepaid expenses expired for factory overhead, $35,500; for selling expenses, $30,100; and for administrative expenses, $21,610

Depreciation of office building was $103,420; of office equipment, $52,480; and of factory equipment, $35,500

Factory overhead costs applied to jobs, $439,900

Jobs completed, $1,018,720

Cost of goods sold, $987,850

Required:

Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $771,760.

Entry Description Debit Credit
a.

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process

fill in the blank 2 fill in the blank 3

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process

fill in the blank 5 fill in the blank 6

b. Materials requisitioned, $648,280, of which $84,280 was for general factory use.

Entry Description Debit Credit
b.

Accounts PayableCost of Goods SoldFinished GoodsMaterialsWork in Process

fill in the blank 8 fill in the blank 9

Administrative ExpensesFactory OverheadFinished GoodsMaterialsSelling Expenses

fill in the blank 11 fill in the blank 12

Factory OverheadFinished GoodsCost of Goods SoldMaterialsWork in Process

fill in the blank 14 fill in the blank 15

c. Factory labor used, $794,910, of which $151,030 was indirect.

Entry Description Debit Credit
c.

Accounts PayableFinished GoodsMaterialsWages PayableWork in Process

fill in the blank 17 fill in the blank 18

Accounts PayableCost of Goods SoldFinished GoodsFactory OverheadWages Payable

fill in the blank 20 fill in the blank 21

Accounts PayableCost of Goods SoldFactory OverheadWages PayableWork in Process

fill in the blank 23 fill in the blank 24

d. Other costs incurred on account for factory overhead, $185,220; selling expenses, $285,550; and administrative expenses, $169,790.

Entry Description Debit Credit
d.

Accounts PayableAccounts ReceivableFactory OverheadMaterialsPrepaid Expenses

fill in the blank 26 fill in the blank 27

Accounts PayableAccounts ReceivableFinished GoodsSelling ExpensesWork in Process

fill in the blank 29 fill in the blank 30

Accounts PayableAdministrative ExpensesFinished GoodsMaterialsWork in Process

fill in the blank 32 fill in the blank 33

Administrative ExpensesAccounts PayableFactory OverheadFinished GoodsSelling Expenses

fill in the blank 35 fill in the blank 36

e. Prepaid expenses expired for factory overhead, $35,500; for selling expenses, $30,100; and for administrative expenses, $21,610.

Entry Description Debit Credit
e.

Accounts ReceivableCashFactory OverheadFinished GoodsWork in Process

fill in the blank 38 fill in the blank 39

CashCost of Goods SoldFinished GoodsMaterialsSelling Expenses

fill in the blank 41 fill in the blank 42

Accounts PayableAdministrative ExpensesFinished GoodsPrepaid ExpensesWork in Process

fill in the blank 44 fill in the blank 45

Accounts ReceivableAdministrative ExpensesFactory OverheadPrepaid ExpensesSelling Expenses

fill in the blank 47 fill in the blank 48

f. Depreciation of office building was $103,420; of office equipment, $52,480; and of factory equipment, $35,500.

Entry Description Debit Credit
f.

Accumulated Depreciation-Office BuildingAccumulated Depreciation-Office EquipmentCost of Goods SoldFinished GoodsDepreciation Expense-Office Building

fill in the blank 50 fill in the blank 51

Accumulated Depreciation-Office BuildingAccumulated Depreciation-Office EquipmentCost of Goods SoldFinished GoodsDepreciation Expense-Office Equipment

fill in the blank 53 fill in the blank 54

Accounts ReceivableAccumulated Depreciation-Office EquipmentCost of Goods SoldFactory OverheadWork in Process

fill in the blank 56 fill in the blank 57

Accumulated Depreciation-Office BuildingFinished GoodsDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory Overhead

fill in the blank 59 fill in the blank 60

Accumulated Depreciation-Office EquipmentFinished GoodsDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory Overhead

fill in the blank 62 fill in the blank 63

Accumulated Depreciation-Factory EquipmentFinished GoodsDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory Overhead

fill in the blank 65 fill in the blank 66

g. Factory overhead costs applied to jobs, $439,900.

Entry Description Debit Credit
g.

Accounts ReceivableFactory OverheadFinished GoodsMaterialsWork in Process

fill in the blank 68 fill in the blank 69

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process

fill in the blank 71 fill in the blank 72

h. Jobs completed, $1,018,720.

Entry Description Debit Credit
h.

Accounts PayableCost of Goods SoldFinished GoodsMaterialsWork in Process

fill in the blank 74 fill in the blank 75

Accounts PayableAccounts ReceivableFactory OverheadFinished GoodsWork in Process

fill in the blank 77 fill in the blank 78

i. Cost of goods sold, $987,850.

Entry Description Debit Credit
i.

Accounts ReceivableCost of Goods SoldFinished GoodsFactory OverheadWork in Process

fill in the blank 80 fill in the blank 81

Accounts ReceivableAccounts PayableCost of Goods SoldFinished GoodsMaterials

fill in the blank 83 fill in the blank 84

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