Present entries to record the above summarized operations re

Present entries to record the above summarized operations related to production for a company using a job order cost system. Refer to the Chart of Accounts for exact wording of account titles.

Income Summary

Present entries to record the following summarized operations related to production for a company using a job order cost system on December 31. Refer to the Chart of Accounts for exact wording of account titles.

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(a)	Materials purchased on account	$176,000
(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	76,000
(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 (assume all sold on account)	638,000

Solution

No Account titles & Explanations Debit Credit a) Raw materials 176,000 Accounts payable 176,000 b) prepaid expense 12,200 Accounts payable 12,200 c) work in process 153,700 Factory overhead 2,700 Raw materials 156,400 d) work in process 141,300 Factory overhead 12,000 Wages payable 153,300 e) factory overhead 37,000 accumulated depreciation-factory equipment 37,000 f) Factory overhead 6,100 prepaid expense 6,100 g) Factory overhead 76,000 Accounts payable 76,000 h) work in process 105,300 Factory overhead 105,300 i) Finished goods 415,300 work in process 415,300 j) cost of goods sold 412,000 finished goods 412,000 Accounts receivable 638,000 sales 638,000