Managerial Accounting

Assignment: 19-2 Homework

Problem 19-1A

Entries for Costs in a Job Order Cost System

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

Materials purchased on account, $528,000.

Materials requisitioned, $462,000, of which $58,800 was for general factory use.

Factory labor used, $545,200, of which $76,400 was indirect.

Other costs incurred on account for factory overhead, $123,400; selling expenses, $195,500; and administrative expenses, $121,800.

Prepaid expenses expired for factory overhead were $24,360; for selling expenses, $20,600; and for administrative expenses, $14,900.

Depreciation of office building was $70,500; of office equipment, $36,120; and of factory equipment, $24,360.

Factory overhead costs applied to jobs, $300,400.

Jobs completed, $840,000.

Cost of goods sold, $740,000.

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 or enter "0".

a. Materials purchased on account, $528,000.

Entry

Description

Debit

Credit

a. Materials

Accounts Payable

b. Materials requisitioned, $462,000, of which $58,800 was for general factory use.

Entry	Description	Debit	Credit
b. Work In Progress

Factory Overhead

Materials

c. Factory labor used, $545,200, of which $76,400 was indirect.

Entry

Description

Debit

Credit

c. Work In Progress

Factory Overhead

Wages Payable

d. Other costs incurred on account for factory overhead, $123,400; selling expenses, $195,500; and administrative expenses, $121,800.

Entry

Description

Debit

Credit

d. Factory Overhead

Selling Expenses

Admin Expenses

Accounts Payable

e. Prepaid expenses expired for factory overhead were $24,360; for selling expenses, $20,600; and for administrative expenses, $14,900.

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

f. Depreciation of office building was $70,500; of office equipment, $36,120; and of factory equipment, $24,360.

Entry

Description

Debit

Credit

f. Depreciation Expense - Office Building

Accumulated Depreciation -Office Equipment

Factory Overhead

Accumulated Depreciation - Building and Equipment

g. Factory overhead costs applied to jobs, $300,400.

Entry

Description

Debit

Credit

g. Work In Progress

Factory Overhead

h. Jobs completed, $840,000.

Entry

Description

Debit

Credit

h. Finished Goods

Work In Progress

i. Cost of goods sold, $740,000.

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