FINANCIAL ACCOUNTING
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Entries for Costs in a
Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:
a. Materials purchased on account, $704,490.
b. Materials requisitioned, $591,770, of which $76,930 was for general factory use.
c. Factory labor used, $725,620, of which $137,870 was indirect.
d. Other costs incurred on account for factory
e. Prepaid expenses expired for factory overhead were $32,410; for selling expenses, $27,480; and for administrative expenses, $19,730.
f.
g.
h. Jobs completed, $929,930.
i. Cost of goods sold, $901,750.
Required:
SEE Both Photos
Transcribed Image Text: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:
a. Materials purchased on account, $704,490.
b. Materials requisitioned, $591,770, of which $76,930 was for general factory use.
c. Factory labor used, $725,620, of which $137,870 was indirect.
d. Other costs incurred on account for factory overhead, $169,080; selling expenses, $260,660; and administrative expenses, $154,990.
e. Prepaid expenses expired for factory overhead were $32,410; for selling expenses, $27,480; and for administrative expenses, $19,730.
f. Depreciation of factory equipment vwas $32,410; of office equipment, $47,910; and of office building, $94,400.
g. Factory overhead costs applied to jobs, $401,560.
h. Jobs completed, $929,930.
i. Cost of goods sold, $901,750.
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, $704,490.
Entry
Description
Debit
Credit
Materials v
704,490
a.
Accounts Payablev
704,490
b. Materials requisitioned, $591,770, of which $76,930 was for general factory use.
Entry
Description
Debit
Credit
Б.
Work in Process v
Factory Overheadv
Materials v
c. Factory labor used, $725,620, of vhich $137,870 was indirect.
Entry
Description
Debit
Credit
Work in Process
C.
Factory Overhead v
Wages Payable v
d. Other costs incurred on account for factory overhead, $169,080; selling expenses, $260,660; and administrative expenses, $154,990.
Entry
Description
Debit
Credit
Factory Overhead v
'P
Selling Expenses v
Administrative Expenses V
Accounts Payable v
Transcribed Image Text:e. Prepaid expenses expired for factory overhead were $32,410; for selling expenses, $27,480; and for administrative expenses, $19,730.
Entry
Description
Debit
Credit
Factory Overhead v
Selling Expenses v
Administrative Expenses v
Prepaid Expenses v
f. Depreciation of factory equipment was $32,410; of office equipment, $47,910; and of office building, $94,400.
Entry
Description
Debit
Credit
f.
Factory Overhead v
Depreciation Expense-Office Equipment v
Depreciation Expense-Office Building v
Accumulated Depreciation-Buildings and Equipment
g. Factory overhead costs applied to jobs, $401,560.
Entry
Description
Debit
Credit
Work in Process
9.
Factory Overhead v
h. Jobs completed, $929,930.
Entry
Finished Goods v
Work in Process
Description
Debit
Credit
h.
i. Cost of goods sold, $901,750.
Entry
Description
Debit
Credit
i.
Cost of Goods Sold
Finished Goods
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