DiSalvio Co. uses a job order cost system. The following data summarize the oper
ID: 2566504 • 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.
May 1 Materials purchased on account, $603,850. 2 Materials requisitioned, $641,100, of which $75,300 was for general factory use. 31 Factory labor used, $688,540, of which $90,730 was indirect. 31 Other costs incurred on account for factory overhead, $154,470; selling expenses, $234,760; and administrative expenses, $145,220. 31 Prepaid expenses expired for factory overhead were $30,340; for selling expenses, $27,590; and for administrative expenses, $18,760. 31 Depreciation of office building was $86,990; of office equipment, $41,730; and of factory equipment, $32,800. 31 Factory overhead costs applied to jobs, $363,550. 31 Jobs completed, $1,017,780. 31 Cost of goods sold, $868,240.Explanation / Answer
SOLUTION
Date Accounts title and Explanation Debit ($) Credit ($) May 1 Materials 603,850 Accounts Payable 603,850 May 2 Work in Process ($641,100-$75,300) 565,800 Factory Overhead 75,300 Materials 641,100 May 31 Work in Process (688,540 - 90,730) 597,810 Factory Overhead 90,730 Wages Payable 688,540 May 31 Factory Overhead 154,470 Selling Expenses 234,760 Administrative Expenses 145,220 Accounts Payable 534,450 May 31 Factory Overhead 30,340 Selling Expenses 27,590 Administrative Espenses 18,760 Prepaid Expenses 76,690 May 31 Depreciation Expense-Office Building 86,990 Depreciation Expense-Office Equipment 41,730 Depreciation Expense-Factory Equipment 32,800 Accumulated Depreciation-Fixed Assets 161,520 May 31 Work in Process 363,550 Factory Overhead 363,550 May 31 Finished Goods 1,017,780 Work in Process 1,017,780 May 31 Costs of Goods Sold 868,240 Finished Goods 868,240