Munson Co uses a job order cost system. The following data summarize the operati
ID: 2392358 • Letter: M
Question
Munson Co uses a job order cost system. The following data summarize the operations related to production for July:
Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
July 1 Materials purchased on account, $645,190. 2 Materials requisitioned, $642,250, of which $72,680 was for general factory use. 31 Factory labor used, $631,920, of which $91,350 was indirect. 31 Other costs incurred on account for factory overhead, $153,030; selling expenses, $228,490; and administrative expenses, $150,890. 31 Prepaid expenses expired for factory overhead, $29,630; for selling expenses, $26,950; and for administrative expenses, $17,150. 31 Depreciation of office building was $88,610; of office equipment, $42,970; and of factory equipment, $31,120. 31 Factory overhead costs applied to jobs, $373,200. 31 Jobs completed, $966,650. 31 Cost of goods sold, $848,470.Explanation / Answer
Journal entries: Date Accounts title and explanations Debit $ Credit $ 1-Jul Raw material Inventory Account Dr. 645190 Accounts payable 645190 2-Jul Work in process inventory Account Dr. 569570 Manufacturing Overheads Account Dr. 72680 Raw material inventory 642250 31-Jul Work in process inventory Account Dr. 540570 Manufacturing Overheads Account Dr. 91350 Factory Wages payable 631920 31-Jul Manufacturing Overheads Account Dr. 153030 Selling and admin Overheads Account Dr. 379380 Accounts payable 532410 31-Jul Manufacturing Overheads Account Dr. 29630 Selling and admin Overheads Account Dr. 44100 Prepaid expense Account 73730 31-Jul Manufacturing Overheads Account Dr. 31120 Selling and admin Overheads Account Dr. 131580 Accumulated Depreciation 162700 31-Jul Work in process Inventory Account Dr. 373200 Manufacturing overheads Account 373200 31-Jul Finished Goods inventory Account Dr. 966650 Work in process inventory Account 966650 31-Jul Cost of Goods sold Account Dr. 848470 Finished Goods inventory Account 848470
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.