What are the journal entries for a general ledger?

ICS operates on a calendar-year basis from January 1 to December 31 with a

monthly accounting period. It uses a job-order cost system. Jobs that are in process are recorded on Job Cost Records. Records are maintained for each job. New jobs are assigned numbers sequentially. They contain the accumulated costs for direct material, direct labor, and factory overhead. (For the purposes of this project, it's assumed that all jobs prior to the current accounting period are either in process or complete and all resulting entries have been made in the previous accounting period.)

ICS has two material accounts:

• Direct Materials
• Indirect Materials and Factory Supplies

Factory Overhead is applied to each job at 25% of direct labor costs for that job.

Debits to Factory Overhead represent actual overhead, and credits represent applied overhead. The difference between actual and applied factory overhead is insignificant and should be closed out to Cost of Goods Sold as an adjusting entry at the end of each month.

Markups to determine the selling price of a job for ICS are 150% of estimated job costs. All sales are exempt from sales tax, as ICS sells locally to resellers.

January 15Assign Job 76 to Cold Refrigeration for the purchase of a refrigeration system. The start date will be January 16. The completion date will be no later than February 28. The estimated direct material is $9,175.00. The estimated indirect material is $1,860.00. The estimated direct labor is $15,600.00. The contract amount is $45,800.00. A deposit of $10,000.00 was provided by Cold Refrigeration in signing the contract. The deposit is unearned revenue.

Half of the contract will be billed upon 50% completion with the deposit applied against that billing with the remaining amount due immediately. A quarter of the contract will be billed upon 75% completion of the contract with the amount due immediately. The remaining amount of the contract is to be billed when the job is 100% complete and is payable within 30 days of the billing.