Question

Barnes Company uses a job order cost system. The following data summarize the operations related to production for October: October 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. Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries.

Answer 1

Answer:

Journal entry

01 Oct Debit Material $663,320 Credit Accounts Payable $663,320

02 Oct Debit Work in process $547,470 Debit Factory overhead $71,310 Credit Material $618,780.

31 Oct Debit Work in process $552,150 Debit Factory overhead $88,200 Credit Salaries and wages payable $640,350

        Debit Factory overheads $140,430 Credit Accounts Payable $140,430

        Debit Selling expense $245,050 Credit  Selling expenses payable $245,050

       Debit Admin expenses $145,440 Credit Admin expenses payable $145,440

       Debit factory expenses $30,100 Credit Prepaid expenses $30,100

      Debit Selling expenses $27,880 Credit Prepaid expenses $27,880

      Debit Admin Expenses $18,590 Credit Prepaid expense $18,590

31 Oct  Debit Depreciation $162,720 Credit Accumulated depreciation : office Building $86490, Office Equipment $45350, Factory Equipment $30,880

     Debit Work in process $365,760 Credit Factory overhead $365,760

   Debit Finished goods $1,017,410 Credit Work in process $1,017,410

   Debit Cost of goods sold $911,220 Credit Finished goods $911,220

     

Explanation: