All questions have to do with cost accounting systems, more in particular, job o
ID: 2419744 • Letter: A
Question
All questions have to do with cost accounting systems, more in particular, job order costing.
Indicate the titles of the accounts to be debited and credited in recording the summarized operations presented below by inserting the letter or letters of the account titles listed in the appropriate columns.
ACCOUNTS
A. Accounts Payable E. Factory Overhead I. Selling and Administrative Expenses
B. Accounts Receivable F. Finished Goods J. Wages Payable
C. Cash G. Materials K. Work in Process
D. Cost of Goods Sold H. Sales
TRANSACTIONS
Debit
Credit
0. Cash paid on account ......................................................................................
A
0. ____
C
0. ____
1-2. Materials requisitioned for use on specific jobs and for general factory use .......................................................................................................................
1. ____
2. ____
3-4. Factory labor incurred on specific jobs and for general factory use .......
3. ____
4. ____
5-6. Applied factory overhead to jobs ...................................................................
5. ____
6. ____
7-8. Paid salary of vice-president of finance .......................................................
7. ____
8. ____
9-10. Cash paid for overhead costs incurred .........................................................
9. ____
10. ____
11-12. Transferred small balance of under-applied overhead ............................
11. ____
12. ____
13-14. Jobs completed .................................................................................................
13. ____
14. ____
TRANSACTIONS
Debit
Credit
0. Cash paid on account ......................................................................................
A
0. ____
C
0. ____
1-2. Materials requisitioned for use on specific jobs and for general factory use .......................................................................................................................
1. ____
2. ____
3-4. Factory labor incurred on specific jobs and for general factory use .......
3. ____
4. ____
5-6. Applied factory overhead to jobs ...................................................................
5. ____
6. ____
7-8. Paid salary of vice-president of finance .......................................................
7. ____
8. ____
9-10. Cash paid for overhead costs incurred .........................................................
9. ____
10. ____
11-12. Transferred small balance of under-applied overhead ............................
11. ____
12. ____
13-14. Jobs completed .................................................................................................
13. ____
14. ____
Explanation / Answer
1 - E - factory overhead
2 - G - material
3 - E - factory overhead
4 - J - wages payable
5 - K - work in process
6 - E - factory overhead
7 - I - selling and adminstrative expenses
8 - C - Cash
9 - E - factory overhead
10 - C -Cash
11 - D - cost of goods sold
12 - E - factory overhead
13 - F - finished goods
14 - K - work in process