DiSalvio Co. uses a job order cost system. The following data summarize the oper
ID: 2459694 • Letter: D
Question
DiSalvio Co. uses a job order cost system. The following data summarize the operations related to production for May:
Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
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Chart of Accounts
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Journal
Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
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May 1 Materials purchased on account, $634,000. 2 Materials requisitioned, $646,200, of which $74,500 was for general factory use. 31 Factory labor used, $660,200, of which $91,200 was indirect. 31 Other costs incurred on account for factory overhead, $147,500; selling expenses, $234,000; and administrative expenses, $146,400. 31 Prepaid expenses expired for factory overhead were $29,200; for selling expenses, $26,800; and for administrative expenses, $18,000. 31 Depreciation of office building was $84,600; of office equipment, $43,340; and of factory equipment, $32,000. 31 Factory overhead costs applied to jobs, $362,000. 31 Jobs completed, $1,002,000. 31 Cost of goods sold, $890,000.Explanation / Answer
Journal Entries 1 Materials A/C Dr 634000 To Accounts Payable 634000 2 Work in Process 646200 To Material 571700 To Manufacturing Overheads 74500 3 Work in process 660200 To labour 569000 To Manufacturing Overheads 91200 4 Factory Overhead Dr 29200 Selling Expenses 26800 Administrative Expenses 18000 Tp Prepaid Expenses 74000 5 Depreciation 159940 To Building 84600 To Equipment 43340 To factory Equipmentt 32000