Question

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

Answer 1

Answer: Transaction General Journal Debit Credit Materials 770,000 Accounts Payable Factory Overhead 770,000 75,800 604,200 b. Work in Process Materials 680,000 Work in Process 574,000 Factory Overhead Wages Payable 182,000 756,000 245,000 d. Factory Overhead Selling Expenses Administrative Expenses Accounts Payable Factory Overhead Selling Expenses Administrative Expenses Prepaid Expenses 171,500 110,600 527,100 24,500 28,420 16,660 69,580 f. Depreciation Expense Accumulated Depreciation-Buildings and Equipment 126,200 126,200 Work in Process 568,500 g. Factory Overhead 568,500 h. Finished Goods 1,500,000 1,500,000 Work in Process Cost of Goods Sold 1,375,000 Finished Goods 1,375,000