DiSalvio Co. uses a job order cost system. The following data summarize the oper
ID: 2501040 • 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.
There are 26 Journal Entries, Thank you
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, $892,790.Explanation / Answer
Recording the journal entries is as follows:
May Account title and equation Debit($) Credit($) 1 Raw material Inventory 630520 Accounts payable 630520 (To record the purhcase) 2 Factory overhead 745690 Work in progress 76690 Raw material Inventory 669000 (To record the issue of material) 31 Wages expense 644620 Work in progress 91400 Wages payable 736020 (To record the wages) 31 Factory overhead 147440 Selling expenses 238240 Adminstrative expense 150800 Accounts payable 536480 (To record the other expenses) 31 Factory overhead 30340 Selling expenses 25550 Adminstrative expense 18210 Prepaid expense 74100 31 Depreciation 163160 Office building 85350 Office equipment 45280 Factory equipment 32530 (To record the depreciation on assets) 31 Work in process Factory overhead (To record the overhead cost applied) 31 Finished goods 996810 Work in process 996810 (To record the finshed goods inventory) 31 Cost of goods sold 892790 Finished goods 892790 (To record the transfer of finished goods)