Please assist and provide steps. Entries for Costs in a Job Order Cost System GI
ID: 2338969 • Letter: P
Question
Please assist and provide steps.
Entries for Costs in a Job Order Cost System GIA Co. uses a job order cost system. The following data summarize the operations related to production for May: a. Materials purchased on account, $694,580 b. Materials requisitioned, $583,450, of which $75,850 was for general factory use. c. Factory labor used, $715,420, of which $135,930 was indirect. d. Other costs incurred on account for factory overhead, $166,700; selling expenses, $256,990; and administrative expenses, $152,810. e. Prepaid expenses expired for factory overhead were $31,950; for selling expenses, $27,090; and for administrative expenses, $19,450 f. Depreciation of office building was $93,070; of office equipment, $47,230; and of factory equipment, $31,950 g. Factory overhead costs applied to jobs, $395,910 h. Jobs completed, $916,850. i. Cost of goods sold, $889,060Explanation / Answer
Entry
Description
Debit
Credit
(a).
Materials
$694580
Accounts Payable
$694580
(For recording purchase of materials on account)
(b).
Work in Process
$583450
Materials
$507600
Factory overhead
$75850
(For recording requisitioned materials)
(c).
Work in Process
$715420
Wages Payable
$579490
Factory overhead
$135930
(For recording used factory labor)
(d).
Factory overhead
$166700
Selling expenses
$256990
Administrative expenses
$152810
Accounts Payable
$576500
(For recording incurred other costs)
(e).
Factory overhead
$31950
Selling expenses
$27090
Administrative expenses
$19450
Prepaid expenses
$78490
(For recording expired prepaid expenses)
(f).
Depreciation expense-Office Building
$93070
Depreciation expense-Office Equipment
$47230
Depreciation expense-Factory Equipment
$31950
Accumulated Dep.-Fixed Assets
$172250
(For recording deprecition expenses)
(g).
Work in Process
$395910
Factory overhead
$395910
(For recording applied factory overhead to jobs)
(h).
Finished goods
$916850
Work in Process
$916850
(For recording completed job)
(i).
Cost of Goods Sold
$889060
Finished goods
$889060
(For recording cost of goods sold)
Entry
Description
Debit
Credit
(a).
Materials
$694580
Accounts Payable
$694580
(For recording purchase of materials on account)
(b).
Work in Process
$583450
Materials
$507600
Factory overhead
$75850
(For recording requisitioned materials)
(c).
Work in Process
$715420
Wages Payable
$579490
Factory overhead
$135930
(For recording used factory labor)
(d).
Factory overhead
$166700
Selling expenses
$256990
Administrative expenses
$152810
Accounts Payable
$576500
(For recording incurred other costs)
(e).
Factory overhead
$31950
Selling expenses
$27090
Administrative expenses
$19450
Prepaid expenses
$78490
(For recording expired prepaid expenses)
(f).
Depreciation expense-Office Building
$93070
Depreciation expense-Office Equipment
$47230
Depreciation expense-Factory Equipment
$31950
Accumulated Dep.-Fixed Assets
$172250
(For recording deprecition expenses)
(g).
Work in Process
$395910
Factory overhead
$395910
(For recording applied factory overhead to jobs)
(h).
Finished goods
$916850
Work in Process
$916850
(For recording completed job)
(i).
Cost of Goods Sold
$889060
Finished goods
$889060
(For recording cost of goods sold)