Royal Technology Company uses a job order cost system. The following data summar

Question

Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $770,000. Materials requisitioned, $680,000, of which $75,800 was for general factory use. Factory labor used, $756,000, of which $182,000 was indirect. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. Factory overhead costs applied to jobs, $568,500. Jobs completed, $1,500,000. Cost of goods sold, $1,375,000. Journalize the entries to record the summarized operations.

Explanation / Answer

Account Titles Debit Credit a. Raw Materials 770000 Accounts Payables 770000 b. Work-in-process 604200 Factory OH 75800 Raw Materials 680000 c. Work-in-process 574000 Factory OH 182000 Salaries & wages payable 756000 d. Factory OH 245000 Selling expenses 171500 Administrative expenses 110600 Accounts Payables 527100 e. Factory OH 24500 Selling expenses 28420 Administrative expenses 16660 Prepaid expenses 69580 f Factory OH 49500 Depreciation -office equipment 61800 Depreciation -office building 14900 Accumulated Depreciation 126200 g. Work-in-process 568500 Factory OH 568500 h. Finished goods 1500000 Work-in-process 1500000 i. Cost of goods sold 1375000 Finished goods 1375000

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