prepare entries to record the following summarized operations related to production for a company using a job order cost system:
a. materials purchased on account-$167000
b. prepaid expenses incurred on account-$12200
c. materials pequisitioned:
for production orders-$153700
for general factory use $2700
d. factory labor used:
on production orders-141300
for general factory purposes-12000
e. depreciation on factory equip.-37000
f. experiation of prepaid expenses, chargeable to factory-6100
g. factory overhead costs incurred on account-67000
h. factory overhead applied, based on machine hours-105300
i. jobs finished-415300
j. jobs shipped to customers:cost $412000; selling price-638000
To prepare entries to record the summarized operations related to production using a job order cost system, you would follow these steps:
a. Materials purchased on account - $167,000:
Debit: Materials Inventory - $167,000
Credit: Accounts Payable - $167,000
b. Prepaid expenses incurred on account - $12,200:
Debit: Prepaid Expenses - $12,200
Credit: Accounts Payable - $12,200
c. Materials requisitioned:
For production orders - $153,700:
Debit: Work in Process Inventory - $153,700
Credit: Materials Inventory - $153,700
For general factory use - $2,700:
Debit: Factory Overhead - $2,700
Credit: Materials Inventory - $2,700
d. Factory labor used:
On production orders - $141,300:
Debit: Work in Process Inventory - $141,300
Credit: Wages Payable - $141,300
For general factory purposes - $12,000:
Debit: Factory Overhead - $12,000
Credit: Wages Payable - $12,000
e. Depreciation on factory equipment - $37,000:
Debit: Factory Overhead - $37,000
Credit: Accumulated Depreciation - Factory Equipment - $37,000
f. Expiration of prepaid expenses, chargeable to factory - $6,100:
Debit: Factory Overhead - $6,100
Credit: Prepaid Expenses - $6,100
g. Factory overhead costs incurred on account - $67,000:
Debit: Factory Overhead - $67,000
Credit: Accounts Payable - $67,000
h. Factory overhead applied, based on machine hours - $105,300:
Debit: Work in Process Inventory - $105,300
Credit: Factory Overhead - $105,300
i. Jobs finished - $415,300:
Debit: Finished Goods Inventory - $415,300
Credit: Work in Process Inventory - $415,300
j. Jobs shipped to customers:
Cost: $412,000
Debit: Cost of Goods Sold - $412,000
Credit: Finished Goods Inventory - $412,000
Selling price: $638,000
Debit: Accounts Receivable - $638,000
Credit: Sales Revenue - $638,000
Remember to consult with a professional accountant or use accounting software when preparing actual financial entries to ensure accuracy and compliance with accounting standards.