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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:

  1. Materials purchased on account, $673,500
  2. Materials requisitioned, $565,740, of which $73,550 was for general factory use
  3. Factory labor used, $693,710, of which $131,800 was indirect
  4. Other costs incurred on account for factory overhead, $161,640; selling expenses, $249,200; and administrative expenses, $148,170
  5. Prepaid expenses expired for factory overhead, $30,980; for selling expenses, $26,270; and for administrative expenses, $18,860
  6. Depreciation of office building was $90,250; of office equipment, $45,800; and of factory equipment, $30,980
  7. Factory overhead costs applied to jobs, $383,890
  8. Jobs completed, $889,020
  9. Cost of goods sold, $862,080

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, $673,500.

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, $565,740, of which $73,550 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, $693,710, of which $131,800 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, $161,640; selling expenses, $249,200; and administrative expenses, $148,170.

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, $30,980; for selling expenses, $26,270; and for administrative expenses, $18,860.

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 $90,250; of office equipment, $45,800; and of factory equipment, $30,980.

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, $383,890.

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, $889,020.

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, $862,080.

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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