DiSalvio Co. uses a job order cost system. The following data summarize the oper
ID: 2401707 • Letter: D
Question
DiSalvio Co. uses a job order cost system. The following data summarize the operations related to production for May: May 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. Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
Explanation / Answer
Date Account Titles and Explanation Debit Credit May 1 Materials $ 630,520 Accounts Payable $ 630,520 May 2 Work in Process $ 592,310 Factory Overhead $ 76,690 Materials $ 669,000 May 31 Work in Process $ 553,020 Factory Overhead $ 91,400 Wages Payable $ 644,420 May 31 Factory Overhead $ 147,440 Selling Expenses $ 238,240 Administrative Expenses $ 150,800 Accounts Payable $ 536,480 May 31 Factory Overhead $ 30,340 Selling Expenses $ 25,550 Administrative Expenses $ 18,210 Prepaid Expenses $ 74,100 May 31 Depreciation Expense—Office Building $ 85,350 Depreciation Expense—Office Equipment $ 45,280 Factory Overhead $ 32,530 Accumulated Depreciation—Buildings and Equipment $ 163,160 May 31 Work in Process $ 374,600 Factory Overhead $ 374,600 May 31 Finished Goods $ 996,810 Work in Process $ 996,810 May 31 Cost of Goods Sold $ 892,790 Finished Goods $ 892,790