Question

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

July	1	Materials purchased on account, $630,520.
	2	Materials requisitioned, $669,000, of which $76,690 was for general factory use.
	31	Factory labor used, $644,620, of which $91,400 was indirect.
	31	Other costs incurred on account for factory overhead, $147,440; selling expenses, $238,240; and administrative expenses, $150,800.
	31	Prepaid expenses expired for factory overhead were $30,340; for selling expenses, $25,550; and for administrative expenses, $18,210.
	31	Depreciation of office building was $85,350; of office equipment, $45,280; and of factory equipment, $32,530.
	31	Factory overhead costs applied to jobs, $374,600.
	31	Jobs completed, $996,810.
	31	Cost of goods sold, $892,790.

	Required:
	Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal entries.

Date	Account Title And Explanation	Debit	Credit
1-Jul	Raw material inventory A/c	$630,520
	Account payable A/c		$630,520
	(Being purchase of raw material recorded)
2	Work in process A/c	$592,310
	Factory overheads A/c	$76,690
	Raw material inventory A/c		$669,000
	(Being material issued recorded)
31	Work in process A/c	$553,220
	Factory overheads A/c	$91,400
	Wages payable A/c		$644,620
	(Being labor charges recorded)
31	Factory overheads A/c	$147,440
	Selling expenses A/c	$238,240
	Administrative expenses A/c	$150,800
	Account payable A/c		$536,480
	(Being factory overheads, selling and administrative expenses incurred on account recorded)
31	Factory overheads A/c	$30,340
	Selling expenses A/c	$25,550
	Administrative expenses A/c	$18,210
	Prepaid expenses A/c		$74,100
	Being prepaid expenses expired for factory overheads, selling and administrative expenses)
31	Depreciation Expense-office building	$85,350
	Depreciation Expense-Office Equipment	$45,280
	Factory Overhead	$32,530
	Accumulated depreciation-fixed assets		$163,160
	(Being depreciation charged recorded)
31	Work in process A/c	$374,600
	Factory overheads A/c		$374,600
	(Being overhead cost applied to job recorded)
31	Finished goods A/c	$996,810
	Work in process		$996,810
	Being job completed recorded)
31	Cost of goods sold A/c	$892,790
	Finished goods A/c		$892,790
	(Being cost of finished jobs transferred to finished goods recorded)