Entries for Costs in a Job Order Cost System Royal Technology Company uses a job

Question

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: Materials purchased on account, $738,430. Materials requisitioned, $620,280, of which $80,640 was for general factory use. Factory labor used, $760,580, of which $144,510 was indirect. Other costs incurred on account for factory overhead, $177,220; selling expenses, $273,220; and administrative expenses, $162,450. Prepaid expenses expired for factory overhead were $33,970; for selling expenses, $28,800; and for administrative expenses, $20,680. Depreciation of factory equipment was $33,970; of office equipment, $50,210; and of office building, $98,950. Factory overhead costs applied to jobs, $420,910. Jobs completed, $974,730. Cost of goods sold, $945,190.

Explanation / Answer

Journal Entries: S.no. Accounts title and explanations Debit $ Credit $ a. Raw material Inventory Dr. 738,430        Accounts payable 738,430 b. Work in Process Inventory Dr. 539640 Manufacturing Overheads Dr. 80640           Raw material Inventory 620,280 c. Work in Process Inventory Dr. 616,070 Manufacturing Overheads Dr. 144,510           Wages payable 760,580 d. Manufacturing Overheads Dr. 177,220 Selling overheads Dr. 273,220 Administrative Overheads Dr. 162,450          Accounts payable 612,890 e. Manufacturing Overheads Dr. 33,970 Selling overheads Dr. 28,800 Administrative Overheads Dr. 20,680           Prepaid expense 83,450 f. Manufacturing Overheads Dr. 33970        Accumulate depreciation-factory Equip 33970         g. Administrative Overheads Dr. 149160        Accumulated depreciation-Equipment 50210       Accumulated depreciation-Building 98950 h. Work in process inventory Dr. 420,910         Manufacturing Overheads 420,910 i. Finished Goods inventory Dr. 974730     Work in process inventory 974730 j. Cost of Goods sold Dr. 945190      Finished Goods inventory 945190

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