DiSalvio Co. uses a job order cost system. The following data summarize the oper
ID: 2480510 • 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.
Chart of Accounts
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, $663,320. 2 Materials requisitioned, $618,780, of which $71,310 was for general factory use. 31 Factory labor used, $640,350, of which $88,200 was indirect. 31 Other costs incurred on account for factory overhead, $140,430; selling expenses, $245,050; and administrative expenses, $145,440. 31 Prepaid expenses expired for factory overhead were $30,100; for selling expenses, $27,880; and for administrative expenses, $18,590. 31 Depreciation of office building was $86,490; of office equipment, $45,350; and of factory equipment, $30,880. 31 Factory overhead costs applied to jobs, $365,760. 31 Jobs completed, $1,017,410. 31 Cost of goods sold, $911,220.Explanation / Answer
Journal Entry Date Particulars Post Ref. Dr. Amt Cr. Amt May-01 Materials Dr. 1 663,320 To Accounts Payable 663,320 May-01 WIP Dr. 2 547,470 Factory Overhead Dr. 71,310 To Materials 618,780 May-31 WIP Dr. 3 552,150 Factory Overhead Dr. 88,200 To Wages Payable 640,350 May-31 Factory Overhead Dr. 4 140,430 Selling Exp. Dr. 245,050 Administrative Exp. Dr. 145,440 To Accounts Payable 530,920 May-31 Factory Overhead Dr. 5 30,100 Selling Exp. Dr. 27,880 Administrative Exp. Dr. 18,590 To Prepaid Expenses 76,570 May-31 Dep. Exp - Office Building Dr. 6 86,490 Dep. Exp - Office Equip. Dr. 45,350 Factory Overhead Dr. 30,880 To Accumulated Dep. - Building & equip. 162,720 May-31 WIP Dr. 7 365,760 To Factory Overhead 365,760 May-31 Finished Goods Dr. 8 1,017,410 To WIP 1,017,410 May-31 Cost of Goods Sold Dr. 9 911,220 To Finished Goods 911,220