Munson Co. uses a job order cost system. The following data summarize the operations related to production for July: July 1 Materials purchased on account, $225,750
2 Materials requisitioned, $217,600, of which $17,600 was for general factory use
31 Factory labor used, $680,000, of which $72,300 was indirect.
31 Other costs incurred on account for factory overhead, $330,000; selling expenses, $180,000; and administrative expenses, $126,000
31 Prepaid expenses expired for factory overhead, $27,500; for selling expenses, $8,100; and for administrative expenses, $5,250
31 Depreciation of office building was $44,500; of office equipment, $16,800; and of factory equipment, $55,100
31 Factory overhead costs applied to jobs, $548,000
31 Jobs completed, $1,140,000
31 Cost of goods sold, $1,128,000

Required:
Journalize the entries to record the summarized operations.

Answer and Explanation:

The journal entries are given below:

a.  Materials   $225,750

        To Accounts Payable  $225,750

(Being material purchased on account is recorded)

b.  Work in Process   $200,000

    Factory Overhead  $17,600

             Materials  $217,600

(Being requisitioned of the material is recorded)

c.  Work in Process  $607,700

Factory Overhead  $72,300

         Wages Payable  $680,000

(Being wages payable is recorded)

d.  Factory Overhead   $330,000

  Selling Expenses   $180,000

  Administrative Expenses  $126,000

               Accounts Payable   $636,000

(Being account payable is recorded)

e. Factory Overhead  $27,500

   Selling Expenses   $8,100

   Administrative Expenses  $5,250

         To Prepaid Expenses  $40,850

(Being prepaid expense expired is recorded)

f.  Depreciation Expense- Office Building   $44,500

   Depreciation Expense- Office Equipment  $16,800

   Factory Overhead  $55,100

           Accumulated Depreciation - Building & equipment $116,400

(Being the depreciation expense is recorded)

g.  Work in Process  $548,000

           Factory Overhead  $548,000

(Being work in process is recorded)

h.  Finished Goods  $1,140,000

         Work in Process  $1,140,000

(Being job completed is recorded)

i.  Cost of Goods Sold  $1,128,000

           Finished Goods  $1,128,000

(Being cost of goods sold is recorded)

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.