Question

Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:

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.

Required:
Journalize the entries to record the summarized operations.

Answer 1

See the journal entries below.

Step-by-step explanation:

The journal entries will look as follows:

Date Account Title Debit ($) Credit ($)

Mar. 1 Materials 770,000

Accounts payable 770,000

(To record materials purchased on account.)

Mar. 2 Factory Overhead 75,800

Work in process 604,200

Materials 680,000

(To record materials requisition.)

Mar. 31 Factory Overhead 182,000

Work in process 574,000

Wages payable 756,000

(To record materials wages payable.)

Mar. 31 Factory Overhead 245,000

Selling expenses 171,500

Administrative expenses 110,600

Accounts payable 527,500

(To record other costs incurred on account.)

Mar. 31 Factory Overhead 24,500

Selling expenses 28,420

Administrative expenses 16,660

Accounts payable 69,580

(To record prepaid expenses expired.)

Mar. 31 Depreciation expenses 126,200

Accumulated dep. - Equp. & Buil. 126,200

(To record depreciation expenses for equipment and building.)

Mar. 31 Work in process 568,500

Factory Overhead 568,500

(To record factory overhead costs applied.)

Mar. 31 Finished goods 1,500,000

Work in process 1,500,000

(To record jobs completed.)

Mar. 31 Cost of goods sold 1,375,000

Finished goods 1,375,000

(To record cost of goods sold.)