70.2K

Verified Solution

Link Copied!

Entries for Costs in a Job Order Cost System

Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July:

Materials purchased on account, $656,450

Materials requisitioned, $551,420, of which $71,680 was for general factory use

Factory labor used, $676,140, of which $128,470 was indirect

Other costs incurred on account for factory overhead, $157,550; selling expenses, $242,890; and administrative expenses, $144,420

Prepaid expenses expired for factory overhead, $30,200; for selling expenses, $25,600; and for administrative expenses, $18,380

Depreciation of office building was $87,960; of office equipment, $44,640; and of factory equipment, $30,200

Factory overhead costs applied to jobs, $374,180

Jobs completed, $866,510

Cost of goods sold, $840,260

Required:

Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $656,450.

Entry	Description	Debit	Credit
a.	Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 2	fill in the blank 3
	Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 5	fill in the blank 6

b. Materials requisitioned, $551,420, of which $71,680 was for general factory use.

Entry	Description	Debit	Credit
b.	Accounts PayableCost of Goods SoldFinished GoodsMaterialsWork in Process	fill in the blank 8	fill in the blank 9
	Administrative ExpensesFactory OverheadFinished GoodsMaterialsSelling Expenses	fill in the blank 11	fill in the blank 12
	Factory OverheadFinished GoodsCost of Goods SoldMaterialsWork in Process	fill in the blank 14	fill in the blank 15

c. Factory labor used, $676,140, of which $128,470 was indirect.

Entry	Description	Debit	Credit
c.	Accounts PayableFinished GoodsMaterialsWages PayableWork in Process	fill in the blank 17	fill in the blank 18
	Accounts PayableCost of Goods SoldFinished GoodsFactory OverheadWages Payable	fill in the blank 20	fill in the blank 21
	Accounts PayableCost of Goods SoldFactory OverheadWages PayableWork in Process	fill in the blank 23	fill in the blank 24

d. Other costs incurred on account for factory overhead, $157,550; selling expenses, $242,890; and administrative expenses, $144,420.

Entry	Description	Debit	Credit
d.	Accounts PayableAccounts ReceivableFactory OverheadMaterialsPrepaid Expenses	fill in the blank 26	fill in the blank 27
	Accounts PayableAccounts ReceivableFinished GoodsSelling ExpensesWork in Process	fill in the blank 29	fill in the blank 30
	Accounts PayableAdministrative ExpensesFinished GoodsMaterialsWork in Process	fill in the blank 32	fill in the blank 33
	Administrative ExpensesAccounts PayableFactory OverheadFinished GoodsSelling Expenses	fill in the blank 35	fill in the blank 36

e. Prepaid expenses expired for factory overhead, $30,200; for selling expenses, $25,600; and for administrative expenses, $18,380.

Entry	Description	Debit	Credit
e.	Accounts ReceivableCashFactory OverheadFinished GoodsWork in Process	fill in the blank 38	fill in the blank 39
	CashCost of Goods SoldFinished GoodsMaterialsSelling Expenses	fill in the blank 41	fill in the blank 42
	Accounts PayableAdministrative ExpensesFinished GoodsPrepaid ExpensesWork in Process	fill in the blank 44	fill in the blank 45
	Accounts ReceivableAdministrative ExpensesFactory OverheadPrepaid ExpensesSelling Expenses	fill in the blank 47	fill in the blank 48

f. Depreciation of office building was $87,960; of office equipment, $44,640; and of factory equipment, $30,200.

Entry	Description	Debit	Credit
f.	Accumulated Depreciation-Office BuildingAccumulated Depreciation-Office EquipmentCost of Goods SoldFinished GoodsDepreciation Expense-Office Building	fill in the blank 50	fill in the blank 51
	Accumulated Depreciation-Office BuildingAccumulated Depreciation-Office EquipmentCost of Goods SoldFinished GoodsDepreciation Expense-Office Equipment	fill in the blank 53	fill in the blank 54
	Accounts ReceivableAccumulated Depreciation-Office EquipmentCost of Goods SoldFactory OverheadWork in Process	fill in the blank 56	fill in the blank 57
	Accumulated Depreciation-Office BuildingFinished GoodsDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory Overhead	fill in the blank 59	fill in the blank 60
	Accumulated Depreciation-Office EquipmentFinished GoodsDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory Overhead	fill in the blank 62	fill in the blank 63
	Accumulated Depreciation-Factory EquipmentFinished GoodsDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory Overhead	fill in the blank 65	fill in the blank 66

g. Factory overhead costs applied to jobs, $374,180.

Entry	Description	Debit	Credit
g.	Accounts ReceivableFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 68	fill in the blank 69
	Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 71	fill in the blank 72

h. Jobs completed, $866,510.

Entry	Description	Debit	Credit
h.	Accounts PayableCost of Goods SoldFinished GoodsMaterialsWork in Process	fill in the blank 74	fill in the blank 75
	Accounts PayableAccounts ReceivableFactory OverheadFinished GoodsWork in Process	fill in the blank 77	fill in the blank 78

i. Cost of goods sold, $840,260.

Entry	Description	Debit	Credit
i.	Accounts ReceivableCost of Goods SoldFinished GoodsFactory OverheadWork in Process	fill in the blank 80	fill in the blank 81
	Accounts ReceivableAccounts PayableCost of Goods SoldFinished GoodsMaterials	fill in the blank 83	fill in the blank 84

Answer & Explanation Solved by verified expert

See Answer