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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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Journal

Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

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Check My Work

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