Question

Entries for Costs in a Job Order Cost System

Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:

Materials purchased on account, $591,670.

Materials requisitioned, $497,000, of which $64,610 was for general factory use.

Factory labor used, $609,420, of which $115,790 was indirect.

Other costs incurred on account for factory overhead, $142,000; selling expenses, $218,920; and administrative expenses, $130,170.

Prepaid expenses expired for factory overhead were $27,220; for selling expenses, $23,080; and for administrative expenses, $16,570.

Depreciation of factory equipment was $27,220; of office equipment, $40,230; and of office building, $79,280.

Factory overhead costs applied to jobs, $337,250.

Jobs completed, $781,000.

Cost of goods sold, $757,340.

Required:

Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $591,670.

Entry	Description	Debit	Credit
a.	Materials
	Accounts Payable

b. Materials requisitioned, $497,000, of which $64,610 was for general factory use.

Entry	Description	Debit	Credit
b.	Work in Process
	Factory Overhead
	Materials

c. Factory labor used, $609,420, of which $115,790 was indirect.

Entry	Description	Debit	Credit
c.	Work in Process
	Factory Overhead
	Wages Payable d. Other costs incurred on account for factory overhead, $142,000; selling expenses, $218,920; and administrative expenses, $130,170. Entry Description Debit Credit d. Factory Overhead Selling Expenses Administrative Expenses Accounts Payable e. Prepaid expenses expired for factory overhead were $27,220; for selling expenses, $23,080; and for administrative expenses, $16,570. Entry Description Debit Credit e. Factory Overhead Selling Expenses Administrative Expenses Prepaid Expenses f. Depreciation of factory equipment was $27,220; of office equipment, $40,230; and of office building, $79,280. Entry Description Debit Credit f. Factory Overhead Depreciation Expense-Office Equipment Depreciation Expense-Office Building Accumulated Depreciation-Buildings and Equipment g. Factory overhead costs applied to jobs, $337,250. Entry Description Debit Credit g. Work in Process Factory Overhead h. Jobs completed, $781,000. Entry Description Debit Credit h. Finished Goods Work in Process i. Cost of goods sold, $757,340. Entry Description Debit Credit i. Cost of Goods Sold Finished Goods

Answer 1