FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $750,730. Materials requisitioned, $630,610, of which $81,980 was for general factory use. Factory labor used, $773,250, of which $146,920 was indirect. Other costs incurred on account for factory overhead , $180,180; selling expenses, $277,770; and administrative expenses, $165,160. Prepaid expenses expired for factory overhead were $34,530; for selling expenses, $29,280; and for administrative expenses, $21,020. Depreciation of factory equipment was $34,530; of office equipment, $51,050; and of office building, $100,600. Factory overhead costs applied to jobs, $427,920. Jobs completed, $990,960. Cost of goods sold, $960,930. Required: Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank. a. Materials purchased on account, $750,730. Entry Description Debit Credit a. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 b. Materials requisitioned, $630,610, of which $81,980 was for general factory use. Entry Description Debit Credit b. fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 c. Factory labor used, $773,250, of which $146,920 was indirect. Entry Description Debit Credit c. fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24 d. Other costs incurred on account for factory overhead, $180,180; selling expenses, $277,770; and administrative expenses, $165,160. Entry Description Debit Credit d. fill in the blank 26 fill in the blank 27 fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33 fill in the blank 35 fill in the blank 36 e. Prepaid expenses expired for factory overhead were $34,530; for selling expenses, $29,280; and for administrative expenses, $21,020. Entry Description Debit Credit e. fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 fill in the blank 44 fill in the blank 45 fill in the blank 47 fill in the blank 48 f. Depreciation of factory equipment was $34,530; of office equipment, $51,050; and of office building, $100,600. Entry Description Debit Credit f. fill in the blank 50 fill in the blank 51 fill in the blank 53 fill in the blank 54 fill in the blank 56 fill in the blank 57 fill in the blank 59 fill in the blank 60 g. Factory overhead costs applied to jobs, $427,920. Entry Description Debit Credit g. fill in the blank 62 fill in the blank 63 fill in the blank 65 fill in the blank 66 h. Jobs completed, $990,960. Entry Description Debit Credit h. fill in the blank 68 fill in the blank 69 fill in the blank 71 fill in the blank 72 i. Cost of goods sold, $960,930. Entry Description Debit Credit i.
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- Ottoson Fencing Inc. uses job order costing. The following data summarize the operations related to production for December, the first month of operations: a. Materials purchased on account, $50,000. b. Materials requisitioned and factory labor used: Job 301 302 303 304 305 306 For general factory use Job Machine Hours 301 302 303 c. Factory overhead costs incurred on account, $1,800. d. Depreciation of machinery and equipment, $2,700. e. The factory overhead rate is $40 per machine hour. Machine hours used: 304 305 306 Total 30 60 41 63 70 36 Materials Factory Labor $1,850 $2,500 3,150 2,200 1,900 4,230 1,770 1,200 300 7,220 5,350 2,300 6,225 2,900 5,000 1. Jobs completed: 301, 302, 303, and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $9,000; Job 302, $16,150; Job 303, $12,800. Required: 1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on December 31. Record item g as 2 entries. 2. Post the…arrow_forwardBarnes Company uses a job order cost system. The following data summarize the operations related to production for October: October 1 Materials purchased on account, $663,320. Materials requisitioned, $618,780, of which $71,310 was for general factory use. Factory labor used, $640,350, of which $88,200 was indirect. Other costs incurred on account for factory overhead, $140,430; selling expenses, $245,050; and administrative expenses, $145,440. 2 31 31 31 31 31 31 31 Prepaid expenses expired for factory overhead were $30,100; for selling expenses, $27,880; and for administrative expenses, $18,590. Depreciation of office building was $86,490; of office equipment, $45,350; and of factory equipment, $30,880. Factory overhead costs applied to jobs, $365,760. Jobs completed, $1,017,410. Cost of goods sold, $911,220.arrow_forwardBarnes Company uses a job order cost system. The following data summarize the operations related to production for October: October Materials purchased on account, $644,380. 1 Materials requisitioned, $670,250, of which $71,770 was for general factory use. 31 Factory labor used, $637,900, of which $88,640 was indirect. 31 Other costs incurred on account for factory overhead, $142,060; selling expenses, $238,560; and administrative expenses, $151,300. 31 Prepaid expenses expired for factory overhead were $29,450; for selling expenses, $27,540; and for administrative expenses, $18,720. 31 Depreciation of office building was $84,480; of office equipment, $43,730; and of factory equipment, $32,270. 31 Factory overhead costs applied to jobs, $379,790. 31 Jobs completed, $988,380. 31 Cost of goods sold, $921,340. Required: Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for…arrow_forward
- 3. Asters Co. uses a job order cost system. The following data summarizes the operations related to production for March. Journalize the entries to record the summarized operations. a. Materials purchased on account for $660,000 b. Materials requisitioned, $577,500 of which $73,500 was for general factory use c. Factory labor used, $681,500, of which $95,000 was indirect labor d. Other costs incurred on account were for factory, $154,320; selling expenses, $244,440; and administrative expenses, $152,250 e. Prepaid expenses expired for factory overhead were $30,450; for selling expenses, $25,830; and for administrative expenses, $18,690 f. Depreciation of office building was $88,200; of office equipment, $45,150; and of factory equipment, $30,450 g. Factory overhead costs applied to jobs, $375,500 h. Jobs completed, $871,800 i. Cost of goods sold, $860,000. Selling price of $925,000.arrow_forwardThe Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $131,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,100 machine-hours were used in October. g. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 28% above cost Required: 1. Prepare journal entries to record the transactions given…arrow_forwardAlberta Capital Company uses a job-order costing system. The following data relate to January, the first month of the company's fiscal year a. Raw materials were purchased on account, $404,000 b. Raw materials were issued to production, $294,000 ($232.000 direct materials and $62,000 indirect materials) c. Direct labour cost was incurred $124,000, indirect labour cost was incurred. $90.000 d. Depreciation was recorded on factory equipment. $90,000 e. Other manufacturing overheed costs were incurred during January $180,000 (credit accounts payable) t. The company applies manufacturing overhead cost to production on the basis of $14 60 per machine-hour There were 32.000 machine-hours recorded for January 9 Production orders costing $786,000 according to their job cost sheets were completed during January and transferred to finished goods. h. Production orders that had cost $720,000 10 complete according to their job cost sheets were shipped to customers during the month. These goods were…arrow_forward
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