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, $315,500.
2 Materials requisitioned, $290,100, of which $8,150 was for general factory use.
31 Factory labor used, $489,500, of which $34,200 was indirect.
31 Other costs incurred on account for factory overhead, $600,000; selling
expenses, $150,000; and administrative expenses, $100,000.
31 Prepaid expenses expired for factory overhead were $18,000; for selling
expenses, $6,000; and for administrative expenses, $5,000.
31 Depreciation of office building was $30,000; of office equipment, $7,500;
and of factory equipment, $60,000.
31 Factory overhead costs applied to jobs, $711,600.
31 Jobs completed, $1,425,000.
31 Cost of goods sold, $1,380,000.
Required:
Journalize the entries to record the summarized operations.

October 1

Raw Materials Inventory $315,500 (debit)

Accounts Payable $315,500 (credit)

October 2

Work In Process : Direct Materials $281,950 (debit)

Work In Process : Indirect Materials $8,150 (debit)

Raw Materials $290,100 (credit)

October 31

Work In Process : Direct Labor $455,300 (debit)

Work In Process : Indirect Labor $34,200(debit)

Salaries Payable  $489,500 (credit)

October 31

Work In Process : Factory Overhead $600,000 (debit);

Selling  expenses  $150,000 (debit)

Administrative expenses, $100,000 (debit)

Accounts Payable $850,000 (credit)

October 31

Factory Overhead  $18,000 (debit);

Selling  Expenses, $6,000 (debit)

Administrative expenses, $5,000 (debit)

Prepaid Factory Overhead were $18,000 (credit);

Prepaid Selling  Expenses, $6,000 (credit)

Prepaid Administrative expenses, $5,000 (credit)

October 31

Depreciation : office building $30,000 (debit)

Depreciation : office equipment, $7,500 (debit)

Work In Process - Depreciation :  factory equipment, $60,000 (debit)

Accumulated Depreciation : Buildings $30,000 (credit)

Accumulated Depreciation : Equipment $67,500 (credit)

October 31

Work In Process : Factory Overheads $711,600 (debit)

Factory Overheads $711,600 (credit)

October 31

Finished Good $1,425,000 (debit)

Work In Process Account $1,425,000 (credit)

October 31

Cost of Goods Sold $1,380,000 (debit)

Finished Goods $1,380,000 (credit)

Explanation:

Manufacturing Costs are accumulated in the Work In Process Account.

When Jobs are completed, De-recognize the cost of jobs completed from Work In Process Account into the Finished Goods Account.

When Jobs are Sold, De-recognize the cost of jobs sold from the Finished Goods Account into the Trading Account.

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