1. Present entries to record the following summarized operations related to production for a company using a job order cost system: Please put a DR before your debits and and CR before credits and enter between each entry.
(a) Materials purchased on account $167,000
(b) Prepaid expenses incurred on account 12,200
(c) Materials requisitioned:
For production orders 153,700
For general factory use 2,700
(d) Factory labor used:
On production orders 141,300
For general factory purposes 12,000
(e) Depreciation on factory equipment 37,000
(f) Expiration of prepaid expenses,
chargeable to factory 6,100
(g) Factory overhead costs incurred on account 67,000
(h) Factory overhead applied, based on machine hours 105,300
(i) Jobs finished 415,300
(j) Jobs shipped to customers: cost, $412,000;
selling price 638,000
(Points : 50)
To record the summarized operations related to production for a company using a job order cost system, you would need to make the following journal entries:
(a) Materials purchased on account $167,000
DR Materials Inventory $167,000
CR Accounts Payable $167,000
(b) Prepaid expenses incurred on account 12,200
DR Prepaid Expenses $12,200
CR Accounts Payable $12,200
(c) Materials requisitioned:
For production orders 153,700
DR Work in Process Inventory $153,700
CR Materials Inventory $153,700
For general factory use 2,700
DR Factory Overhead $2,700
CR Materials Inventory $2,700
(d) Factory labor used:
On production orders 141,300
DR Work in Process Inventory $141,300
CR Factory Wages Payable $141,300
For general factory purposes 12,000
DR Factory Overhead $12,000
CR Factory Wages Payable $12,000
(e) Depreciation on factory equipment 37,000
DR Factory Overhead $37,000
CR Accumulated Depreciation - Factory Equipment $37,000
(f) Expiration of prepaid expenses,
chargeable to factory 6,100
DR Factory Overhead $6,100
CR Prepaid Expenses $6,100
(g) Factory overhead costs incurred on account 67,000
DR Factory Overhead $67,000
CR Accounts Payable $67,000
(h) Factory overhead applied, based on machine hours 105,300
DR Work in Process Inventory $105,300
CR Factory Overhead $105,300
(i) Jobs finished 415,300
DR Finished Goods Inventory $415,300
CR Work in Process Inventory $415,300
(j) Jobs shipped to customers: cost, $412,000;
selling price 638,000
DR Cost of Goods Sold $412,000
DR Accounts Receivable $638,000
CR Finished Goods Inventory $412,000
Please note that these entries may vary based on the specific accounting practices and policies of the company. It is recommended to consult with a professional accountant for precise journal entries.