GIA Co. uses a job order cost system. The following data summarize the operation
ID: 2360180 • Letter: G
Question
GIA Co. uses a job order cost system. The following data summarize the operations related to production for August: a.Materials purchased on account, $660,000. b.Materials requisitioned, $577,500, of which $73,500 was for general factory use. c.Factory labor used, $681,500, of which $95,500 was indirect. d.Other costs incurred on account were for factory overhead, $154,320; selling expenses, $244,440; and administrative expenses, $152,250. e.Prepaid expenses expired for factory overhead were $30,450; for selling expenses, $25,830; and for administrative expenses, $18,690. f.Depreciation of office building was $88,200; of office equipment, $45,150; and of factory equipment, $30,450. g.Factory overhead costs applied to jobs, $375,500. h.Jobs completed, $871,800. i.Cost of goods sold, $860,000. Instructions: Journalize the entries to record the summarized operations. a. Materials purchased on account, $660,000. b. Materials requisitioned, $577,500, of which $73,500 was for general factory use. c. Factory labor used, $681,500, of which $95,500 was indirect. d. Other costs incurred on account were for factory overhead, $154,320; selling expenses, $244,440; and administrative expenses, $152,250. e. Prepaid expenses expired for factory overhead were $30,450; for selling expenses, $25,830; and for administrative expenses, $18,690. f. Depreciation of office building was $88,200; of office equipment, $45,150; and of factory equipment, $30,450. g. Factory overhead costs applied to jobs, $375,500. h. Jobs completed, $871,800. i. Cost of goods sold, $860,000.Explanation / Answer
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, $660,000. ........Materials.....................… Dr ___$660,000____ ........Accounts Payable ............ Cr ___ $660,000_____ b. Materials requisitioned, $577,500, of which $73,500 was for general factory use. Work in Process ............... Dr $504,000 Factory Overhead .............. Dr $73,500 Materials ........................... Cr $577,500 Note the change between debits and credits c. Factory labor used, $681,500, of which $95,500 was indirect. Work in Process ........................ Dr $586,000 Factory Overhead ...................... Dr $ 95,500 Wages Payable.......................... Cr $681,500 d. Other costs incurred on account were for factory overhead, $154,320; selling expenses, $244,440; and administrative expenses, $152,250. Factory Overhead ..................... Dr $154,320 Selling Expenses ..................... Dr $244,440 Administrative Expenses .......... Dr $152,250 Accounts Payable.................... Cr $551,010 e. Prepaid expenses expired for factory overhead were $30,450; for selling expenses, $25,830; and for administrative expenses, $18,690. Factory Overhead ...................... Dr $30,450 Selling Expenses ...................... Dr $ 25,830 Administrative Espenses ............ Dr $18,690 Prepaid Expenses...................... Cr $74,970 f. Depreciation of office building was $88,200; of office equipment, $45,150; and of factory equipment, $30,450. Depreciation Expense-Office Building........ Debit $88,200 Depre. Expense-Office Equipment ........... Debit $45,150 Factory Overhead ......................................De… $30,450 Accumulated Depre.-Fixed Assets ............. Credit $163,800 Note change in debit and credit accounts g. Factory overhead costs applied to jobs, $375,500. Work in Process ............... Dr $375,500 Factory Overhead .............. Cr $375,500 h. Jobs completed, $871,800. Finished Goods .............. Dr $871,800 Work in Process ............ Cr $871,800 i. Cost of goods sold, $860,000. Costs of Goods Sold .............. Dr $860,000 Finished Goods...................... Cr $860,000
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