Velasco Company uses a job order cost system. The following data summarize the operations related to production for July: a. Materials purchased on account, $203,940. b. Materials requisitioned, $191,480, of which $15,530 was for general factory use. c. Factory labor used, $598,400, of which $63,620 was indirect. d. Other costs incurred on account for factory overhead, $290,400; selling expenses, $158,300; and administrative expenses, $110,900. e. Prepaid expenses expired for factory overhead, $21,310; for selling expenses, $6,250; and for administrative expenses, $7,940. f. Depreciation of office building was $40,100; of office equipment, $13,500; and of factory equipment, $51,200. g. Factory overhead costs applied to jobs, $452,240. h. Jobs completed, $1,003,200. i. Cost of goods sold, $992,600. Instructions Journalize the entries to record the summarized operations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Velasco Company uses a job order cost system. The following data summarize the
operations related to production for July:
a. Materials purchased on account, $203,940.
b. Materials requisitioned, $191,480, of which $15,530 was for general factory
use.
c. Factory labor used, $598,400, of which $63,620 was indirect.
d. Other costs incurred on account for factory overhead, $290,400; selling
expenses, $158,300; and administrative expenses, $110,900.
e. Prepaid expenses expired for factory overhead, $21,310; for selling
expenses, $6,250; and for administrative expenses, $7,940.
f. Depreciation of office building was $40,100; of office equipment, $13,500;
and of factory equipment, $51,200.
g. Factory overhead costs applied to jobs, $452,240.
h. Jobs completed, $1,003,200.
i. Cost of goods sold, $992,600.
Instructions
Journalize the entries to record the summarized operations.
Transcribed Image Text:Velasco Company uses a job order cost system. The following data summarize the operations related to production for July: a. Materials purchased on account, $203,940. b. Materials requisitioned, $191,480, of which $15,530 was for general factory use. c. Factory labor used, $598,400, of which $63,620 was indirect. d. Other costs incurred on account for factory overhead, $290,400; selling expenses, $158,300; and administrative expenses, $110,900. e. Prepaid expenses expired for factory overhead, $21,310; for selling expenses, $6,250; and for administrative expenses, $7,940. f. Depreciation of office building was $40,100; of office equipment, $13,500; and of factory equipment, $51,200. g. Factory overhead costs applied to jobs, $452,240. h. Jobs completed, $1,003,200. i. Cost of goods sold, $992,600. Instructions Journalize the entries to record the summarized operations.
a
Correct
Materials
Correct
Accounts Payable
b
Correct
Work in Process
Correct
Factory Overhead
Correct
Materials
Correct
Work in Process
Correct
Factory Overhead
Correct
Wages Payable
d.
Correct
Factory Overhead
Correct
Selling Expenses
Correct
Administrative Expenses
Correct
Accounts Payable
Correct
Factory Overhead
e
Correct
Selling Expenses
Correct
Administrative Expenses
Correct
Prepaid Expenses
Depreciation Expense - Office Building
Depreciation Expenses - Office Equipment
f
Correct
Correct
Correct
Factory Overhead
Correct
Accumulated Depreciation - Building and Equipment
Correct
Work in Process
Correct
Factory Overhead
h
Correct
Finished Goods
Correct
Work in Process
i
Correct
Cost of Goods Sold
Correct
Finished Goods
Transcribed Image Text:a Correct Materials Correct Accounts Payable b Correct Work in Process Correct Factory Overhead Correct Materials Correct Work in Process Correct Factory Overhead Correct Wages Payable d. Correct Factory Overhead Correct Selling Expenses Correct Administrative Expenses Correct Accounts Payable Correct Factory Overhead e Correct Selling Expenses Correct Administrative Expenses Correct Prepaid Expenses Depreciation Expense - Office Building Depreciation Expenses - Office Equipment f Correct Correct Correct Factory Overhead Correct Accumulated Depreciation - Building and Equipment Correct Work in Process Correct Factory Overhead h Correct Finished Goods Correct Work in Process i Correct Cost of Goods Sold Correct Finished Goods
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