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

raw materials inventory 225,750

account payable 225,750

to record purchase of materials

WIP 217,600 debit

factory overhead 17,600 debit

raw materials 225,750 credir

to record use of materials

WIP 606,700 debit

factory overhead 72,300 debit

wages payable 680,000

to record wages for the period

factory overhead 330,000

selling expense 180,000

administrative expense 126,000

account payable 636,000

to record other expenses on account

factory overhead 27,500

selling expense 8, 100

adm expense 5, 250

prepaid expenses 40,850

to record expired prepaid

factory overhead 55,100

depreciation expense 61,300

acc depreciation factory equipmnet 55,100

acc depreciation office equipment 16,800

acc depreciation building 44,500

to record depreciation for the period

WIP 548,000

factory overhead 548,000

to record applied overhead

Finished Goods 1,140,000

WIP 1,140,000

to record jobs completed

COGS 1,128,000

Finished Goods 1,128,000

to record COGS

Factory Overhead 45,500 debit

COGS 45,500 credit

to record adjustment for overapplied factory overhead

Explanation:

For each entry we will make sure to make the difference between capitalized cost (factory overhead labor and materials) and cost for the period (selling and administrative expenses)

Then we will do the adjustment for hte overhead

adjustment for overhead:

actual overhead:

17,600 indirect materials

72,300 indirect labor

330,000 other expenses

27,500 expired prepaid

55,100 depreciation equipment

502,500 actual overhead

548,000 applied overhead

The actual cost were lower than expected, we charge more cost on the goods than we should, so we adjust and decrease the Cost of Goods Sold.

adjusment for overapplied overhead: 45,500