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, $492,950.

Materials requisitioned, $414,080, of which $53,830 was for general factory use.

Factory labor used, $507,740, of which $96,470 was indirect.

Other costs incurred on account for factory overhead, $118,310; selling expenses, $182,390; and administrative expenses, $108,450.

Prepaid expenses expired for factory overhead were $22,680; for selling expenses, $19,230; and for administrative expenses, $13,800.

Depreciation of factory equipment was $22,680; of office equipment, $33,520; and of office building, $66,060.

Factory overhead costs applied to jobs, $280,980.

Jobs completed, $650,690.

Cost of goods sold, $630,980.

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, $492,950.

Entry	Description	Debit	Credit
a.	Materials
	Accounts Payable

b. Materials requisitioned, $414,080, of which $53,830 was for general factory use.

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

c. Factory labor used, $507,740, of which $96,470 was indirect.

Entry	Description	Debit	Credit
c.	Work in Process
	Factory Overhead
	Wages Payable

d. Other costs incurred on account for factory overhead, $118,310; selling expenses, $182,390; and administrative expenses, $108,450.

Entry	Description	Debit	Credit
d.	Factory Overhead
	Selling Expenses
	Administrative Expenses
	Accounts Payable

e. Prepaid expenses expired for factory overhead were $22,680; for selling expenses, $19,230; and for administrative expenses, $13,800.

Entry	Description	Debit	Credit
e.	Factory Overhead
	Selling Expenses
	Administrative Expenses
	Prepaid Expenses

f. Depreciation of factory equipment was $22,680; of office equipment, $33,520; and of office building, $66,060.

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, $280,980.

Entry	Description	Debit	Credit
g.	Work in Process
	Factory Overhead

h. Jobs completed, $650,690.

Entry	Description	Debit	Credit
h.	Finished Goods
	Work in Process

i. Cost of goods sold, $630,980.

Entry	Description	Debit	Credit
i.	Cost of Goods Sold
	Finished Goods

Answer 1

a. Materials purchased on account
Entry	Description	Debit	Credit
a.	Materials	$492,950
	Accounts Payable		$492,950
b.   Materials requisitioned,
Entry	Description	Debit	Credit
b.	Work in Process (414080-53830)	360250
	Factory Overhead	53830
	Materials		414080
c.   Factory labor used,
Entry	Description	Debit	Credit
c.	Work in Process (507740-96470)	411270
	Factory Overhead	96470
	Wages Payable		507740
d. Other costs incurred on account
Entry	Description	Debit	Credit
d.	Factory Overhead	118310
	Selling Expenses	182390
	Administrative Expenses	108450
	Accounts Payable		409150
e. Prepaid expenses expired recorded
Entry	Description	Debit	Credit
e.	Factory Overhead	22680
	Selling Expenses	19230
	Administrative Expenses	13800
	Prepaid Expenses		55710
f. Depreciation recorded
Entry	Description	Debit	Credit
f.	Factory Overhead	22680
	Depreciation Expense-Office Equipment	33520
	Depreciation Expense-Office Building	66060
	Accumulated Depreciation-Buildings and Equipment		122260
g. Factory overhead costs applied to jobs
Entry	Description	Debit	Credit
g.	Work in Process	280980
	Factory Overhead		280980
h. Jobs completed,
Entry	Description	Debit	Credit
h.	Finished Goods	650690
	Work in Process		650690
i. Cost of goods sold recorded
Entry	Description	Debit	Credit
i.	Cost of Goods Sold	630980
	Finished Goods		630980
If any doubt please comment