Question

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

Mar.	1	Materials purchased on account, $770,000.
	2	Materials requisitioned, $680,000, of which $75,800 was for general factory use.
	31	Factory labor used, $756,000, of which $182,000 was indirect.
	31	Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.
	31	Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.
	31	Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.
	31	Factory overhead costs applied to jobs, $568,500.
	31	Jobs completed, $1,500,000.
	31	Cost of goods sold, $1,375,000.

Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Material	770000
	Account payable		770000
2	Work in process (680000-75800)	604200
	Manufacturing overhead	75800
	Material		680000
3	Work in process (756000-182000)	574000
	Manufacturing overhead	182000
	Factory labor		756000
4	Factory overhead	245000
	Selling expense	171500
	Administrative expense	110600
	Account payable		527100
5	manufacturing overhead	24500
	Selling expense	28420
	Administrative expense	16660
	prepaid expense		69580
6	Manufacturing overhead	49500
	Administrative expense (61800+14900)	76700
	Accumulated depreciation-equipment		111300
	Accumulated depreciation-building		14900
7	Work in process	568500
	Manufacturing overhead		568500
8	Finished goods	1500000
	work in process		1500000
9	Cost of goods sold	1375000
	Finished goods		1375000