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DiSalvio Co. uses a job order cost system. The following data summarize the oper

ID: 2464233 • 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.

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

Score: 289/322

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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

Date

Description

POST.REF

Debit

Credit

1

May 1

Material inventory

$634,000

Accounts payable

$634,000

2

May 2

Work in Process

$571,700

Factory Overhead

$74,500

Materials

$646,200

3

May 31

Work in Process

$569,000

Factory Overhead

$91,200

Wages Payable

$660,200

4

May 31

Factory Overhead

$147,500

Selling Expenses

$234,000

Administrative Expenses

$146,400

Accounts Payable

$527,900

5

May 31

Factory Overhead

$29,200

Selling Expenses

$26,800

Administrative Expenses

$18,000

Prepaid Expenses

$74,000

6

May 31

Depreciation Expense-Office Building

$84,600

Depreciation Expense-Office Equipment

$43,340

Factory Overhead

$32,000

Accumulated Depreciation-Fixed Assets

$159,940

7

May 31

Work in Process

$362,000

Factory Overhead

$362,000

8

May 31

Finished Goods

$1,002,000

Work in Process

$1,002,000

9

May 31

Costs of Goods Sold

$890,000

Finished Goods

$890,000

Date

Description

POST.REF

Debit

Credit

1

May 1

Material inventory

$634,000

Accounts payable

$634,000

2

May 2

Work in Process

$571,700

Factory Overhead

$74,500

Materials

$646,200

3

May 31

Work in Process

$569,000

Factory Overhead

$91,200

Wages Payable

$660,200

4

May 31

Factory Overhead

$147,500

Selling Expenses

$234,000

Administrative Expenses

$146,400

Accounts Payable

$527,900

5

May 31

Factory Overhead

$29,200

Selling Expenses

$26,800

Administrative Expenses

$18,000

Prepaid Expenses

$74,000

6

May 31

Depreciation Expense-Office Building

$84,600

Depreciation Expense-Office Equipment

$43,340

Factory Overhead

$32,000

Accumulated Depreciation-Fixed Assets

$159,940

7

May 31

Work in Process

$362,000

Factory Overhead

$362,000

8

May 31

Finished Goods

$1,002,000

Work in Process

$1,002,000

9

May 31

Costs of Goods Sold

$890,000

Finished Goods

$890,000