Question

DiSalvio Co. uses a job order cost system. The following data summarize the operations related to production for May:a. Materials purchased on account, $634,000.b. Materials requisitioned, $646,200, of which $74,500 was for general factory use.c. Factory labor used, $660,200, of which $91,200 was indirect.d. Other costs incurred on account for factory overhead, $147,500; selling expenses, $234,000; and administrative expenses, $146,400.e. Prepaid expenses expired for factory overhead were $29,200; for selling expenses, $26,800; and for administrative expenses, $18,000.f. Depreciation of office building was $84,600; of office equipment, $43,340; and of fac-tory equipment, $32,000.g. Factory overhead costs applied to jobs, $362,000.h. Jobs completed, $1,002,000.i. Cost of goods sold, $890,000.InstructionsJournalize the entries to record the summarized operations.SHOWME HOWGeneral Ledger Chapter 2 Job Order Costing 69Ex 2-18PR

Answer 1

Date Account Description Debit Credit

May 1 Material inventory $634,000

Accounts Payable $634,000

Date Account Description Debit Credit

May 2 Work in Process (646,200 - 74,500) $571,700

Factory Overhead $74,500

Materials $646,200

Date Account Description Debit Credit

May 31 Work in Process (660,200 - 91,200) $569,000

Factory Overhead $91,200

Materials $660,200

Date Account Description Debit Credit

May 31 Factory Overhead $147,500

Selling expenses $234,000

Admin expenses $146,400

Accounts payable $527,900

Date Account Description Debit Credit

May 31 Factory Overhead $29,200

Selling expenses $26,800

Admin expenses $18,000

Prepaid expenses $74,000

Date Account Description Debit Credit

May 31 Depreciation expense - Office building $84,600

Depreciation expense - Office equipment $43,340

Factory Overhead $32,000

Accumulated depreciation $159,940

Date Account Description Debit Credit

May 31 Work in Process $362,000

Factory Overhead $362,000

Date Account Description Debit Credit

May 31 Finished Goods $1,002,000

Work in Process $1,002,000

Date Account Description Debit Credit

May 31 Cost of goods sold $890,000

Finished Goods $890,000