Present entries to record the following summarized operations related to product

Question

Present entries to record the following summarized operations related to production for a company using a job order cost system:



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

Explanation / Answer

A. Raw Materials                             $167,000             Accounts Payable                                               167,000 (To record purchase of raw materials) B. Insurance Expenses                       12,200             Pre-paid Insurance                                                12,200 (To record pre-paid expenses) C. Production                                  153,700      GeneralFactory                               2,700               Raw-materials                                                    156,400 (To record materials requisition) D.Work-in-process                         153,300                 Salaries and wages                                          153,300 (To record labour expenses for production and general factory) E. Depreciation Expenses                    37,000                Accumulated Depreciation                                 37,000 (To record depreciation expenses on factory equipment) F. Insurance Expenses                           6,100            Pre-paid Insurance                                                 6,100 (To record pre-paid insurance) G. Manufacturing Overhead                  67,000            Raw Material                                                         67,000 (To record factory overhead costs) H.Work-in-Process                           105,300              Manufacturing overhead                                     105,300 (To record manufacturing overheads to work in process) I. Finished Goods                               415,300              Work in Process                                                 415,300 (To record finished jobs) J. Cost of Goods sold                       412,000                Finished Goods                                                412,000 (To record Jobs shipped to customer cost) Account Receivable                           638,000              Sales                                                                  638,000 (To record the sale)    

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