Royal Technology Company uses a job order cost system. The following data summar
ID: 2460462 • Letter: R
Question
Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:
Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
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Chart of Accounts
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Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
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Mar. 1 Materials purchased on account, $770,000. 2 Materials requisitioned, $680,000, of which $75,800 was for general factory use. 31 Factory labor used, $756,000, of which $182,000 was indirect. 31 Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. 31 Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. 31 Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. 31 Factory overhead costs applied to jobs, $568,500. 31 Jobs completed, $1,500,000. 31 Cost of goods sold, $1,375,000.Explanation / Answer
Journal Entry Amt in $ Amt in $ 01-Mar Purchase A/C dr. 770,000 To Accounts Payable 770,000 02-Mar Work in process A/C dr. 604,200 Factory Overhead A/C dr. 75800 To Material A/C 680,000 31-Mar Work in process A/C dr. 574,000 Factory Overhead A/C dr. 182000 To Wages Payable A/C 756,000 31-Mar Factory Overhead A/C dr. 245,000 Selling Expenses A/C dr. 171,500 Administrative Expenses A/C dr. 110,600 To Accounts Payable a/c 527,100 31-Mar Factory Overhead A/C dr. 24,500 Selling Expenses A/C dr. 28,420 Administrative Expenses A/C dr. 16,660 To Prepaid Expenses a/c 69,580 31-Mar Factory Overhead A/C Dr. 49,500 Deprciation Expenses on office Equipment A/C dr. 61,800 Deprciation Expenses on office building A/C dr. 14,900 To Accumulated Depriciation Expenses on Fixed Assets A/C 126,200 31-Mar Work in process A/C dr. 568,500 To Factory Overhead 568,500 31-Mar Finished Goods A/C dr. 1,500,000 To Work in precess A/C 1,500,000 31-Mar Cost of goods Sold A/C dr. 1,375,000 To Finished Goods A/C 1,375,000
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