Entries for Costs in a Job Order Cost System Royal Technology Company uses a job
ID: 2515171 • Letter: E
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, $492,950.
Materials requisitioned, $414,080, of which $53,830 was for general factory use.
Factory labor used, $507,740, of which $96,470 was indirect.
Other costs incurred on account for factory overhead, $118,310; selling expenses, $182,390; and administrative expenses, $108,450.
Prepaid expenses expired for factory overhead were $22,680; for selling expenses, $19,230; and for administrative expenses, $13,800.
Depreciation of factory equipment was $22,680; of office equipment, $33,520; and of office building, $66,060.
Factory overhead costs applied to jobs, $280,980.
Jobs completed, $650,690.
Cost of goods sold, $630,980.
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.
a. Materials purchased on account, $492,950.
b. Materials requisitioned, $414,080, of which $53,830 was for general factory use.
c. Factory labor used, $507,740, of which $96,470 was indirect.
d. Other costs incurred on account for factory overhead, $118,310; selling expenses, $182,390; and administrative expenses, $108,450.
e. Prepaid expenses expired for factory overhead were $22,680; for selling expenses, $19,230; and for administrative expenses, $13,800.
f. Depreciation of factory equipment was $22,680; of office equipment, $33,520; and of office building, $66,060.
g. Factory overhead costs applied to jobs, $280,980.
h. Jobs completed, $650,690.
i. Cost of goods sold, $630,980.
Entry Description Debit Credit a. Materials Accounts PayableExplanation / Answer
a. Materials purchased on account Entry Description Debit Credit a. Materials $492,950 Accounts Payable $492,950 b. Materials requisitioned, Entry Description Debit Credit b. Work in Process (414080-53830) 360250 Factory Overhead 53830 Materials 414080 c. Factory labor used, Entry Description Debit Credit c. Work in Process (507740-96470) 411270 Factory Overhead 96470 Wages Payable 507740 d. Other costs incurred on account Entry Description Debit Credit d. Factory Overhead 118310 Selling Expenses 182390 Administrative Expenses 108450 Accounts Payable 409150 e. Prepaid expenses expired recorded Entry Description Debit Credit e. Factory Overhead 22680 Selling Expenses 19230 Administrative Expenses 13800 Prepaid Expenses 55710 f. Depreciation recorded Entry Description Debit Credit f. Factory Overhead 22680 Depreciation Expense-Office Equipment 33520 Depreciation Expense-Office Building 66060 Accumulated Depreciation-Buildings and Equipment 122260 g. Factory overhead costs applied to jobs Entry Description Debit Credit g. Work in Process 280980 Factory Overhead 280980 h. Jobs completed, Entry Description Debit Credit h. Finished Goods 650690 Work in Process 650690 i. Cost of goods sold recorded Entry Description Debit Credit i. Cost of Goods Sold 630980 Finished Goods 630980 If any doubt please comment
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