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PE 19-3B Factory overhead costs During August, Rothchild Company scrials, $17,50

ID: 2589547 • Letter: P

Question

PE 19-3B Factory overhead costs During August, Rothchild Company scrials, $17,500, indirect labor, $22,000, utilities cost, 19.600, and factory depreciation, incurred factory overhead coms as follows indirect 317,500. Journalize the entry to record the factory overhead incurred during Ag PR 19-18 Entries for costs in a job order cost system Royal Technology Company uses a job order cost system. the operations related to production for March 083.2 The following data summarize b. Materials requisitioned, $680,000, of which $75,800 was for general factory use c. Factory labor used, $756,000, of which $182,000 was indirect d. Other costs incurred on account for factory overhead, $245,000, selling expenses, $171,500; and administrative expenses, $110,600. e. Prepaid expenses expired for factory overhead were $24,500, for selling expenses, $28,420; and for administrative expenses, $16,660. r. Depreciation of factory equipment was $49,500, of office equipment, $61,800, and of office building, $14,900. g. Factory overhead costs applied to jobs, $568,500. h. Jobs completed, $1,500,000. i. Cost of goods sold, $1,375,000. Journalize the entries to record the summarized operations.

Explanation / Answer

a. Materials purchased on account, $770,000.

........Materials........................ Dr ___$770,000____
........Accounts Payable ............ Cr ___ $770,000_____


b. Materials requisitioned, $680,000, of which $75,800 was for general factory use.

Work in Process ............... Dr $604,200
Factory Overhead .............. Dr $75,800
Materials ........................... Cr $680,000


c. Factory labor used, $756,000 of which $182,000 was indirect.

Work in Process ........................ Dr $574,000
Factory Overhead ...................... Dr $ 182,000
Wages Payable.......................... Cr $756,000

d. Other costs incurred on account were for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600

Factory Overhead ..................... Dr $245,000
Selling Expenses ..................... Dr $171,500
Administrative Expenses .......... Dr $110,600
Accounts Payable.................... Cr $527,100

e. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660

Factory Overhead ...................... Dr $24,500
Selling Expenses ...................... Dr $ 28,420
Administrative Espenses ............ Dr $16,660
Prepaid Expenses...................... Cr $69,580

f. Depreciation of office building was $49,500; of office equipment, $61,800; and of factory equipment, $14,900

Depreciation Expense-Office Building........ Debit $49,500
Depre. Expense-Office Equipment ........... Debit $61,800
Factory Overhead ......................................De... $14,900
Accumulated Depre.-Fixed Assets ............. Credit $126,200

Note change in debit and credit accounts


g. Factory overhead costs applied to jobs, $568,500.

Work in Process ............... Dr $568,500.
Factory Overhead .............. Cr $568,500.


h. Jobs completed, $1,500,000

Finished Goods .............. Dr $1,500,000
Work in Process ............ Cr $1,500,000


i. Cost of goods sold, $1,375,000.

Costs of Goods Sold .............. Dr $1,375,000.
Finished Goods...................... Cr $1,375,000.