Present entries to record the following summarized operations related to product
ID: 2498291 • Letter: P
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
(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
Journal Entries ( all Amounts in $)
a) Purchases account dr $167,000
To Vendor Ac $167,000
b) Prepaid Expenses Dr 12,200
To Expenses Account 12,200
c) No Accounting Entry for Requisition but Entry required only on Completion of Production.
d) Direct Labour Dr 141300
office/ general OH Dr 12000
To Labour expense 153300
e) Depreciation Ac Dr 37000
To asset A/c 37000
f) factory OH Dr 6100
To Prepaid Exp 6100
g) Factory OH Dr 67000
To Vendor 67000
h) Cost Of Production Dr 105300
To Factory OH 105300
i) Finished goods Dr 415300
To Cost Of Production 415300
j) Sales Dr 638000
To Cost of Goods Sold 412000
To Profit 226000
k) Debtors Dr 638000
To Sales 638000
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