2. Illustrate effects on the accounts and financial statements of each of the following transactions. For a company using a job order cost system:

Question

(a) Materials purchased on account $176,000
(b) Materials requisitioned:
For production orders $161,500
For general factory use $8,700
(c) Factory labor used:
On production orders $139,800
For general factory purposes $9,000
(d) Depreciation on factory equipment $38,000
(e) Factory overhead applied, based on machine hours $97,560
(f) Jobs finished $406,000
(g) Jobs shipped to customers: cost, $394,000; selling price $574,500

Answer 1

material