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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, $482,690.
1 Materials requisitioned, $405,460, of which $52,710 was for general factory use.
31 Factory labor used, $497,170, of which $94,460 was indirect.
31 Other costs incurred on account for factory overhead, $115,850; selling expenses, $178,600; and administrative expenses, $106,190.
31 Prepaid expenses expired for factory overhead were $22,200; for selling expenses, $18,820; and for administrative expenses, $13,520.
31 Depreciation of factory equipment was $22,200; of office equipment, $32,820; and of office building, $64,680.
31 Factory overhead costs applied to jobs, $275,130.
31 Jobs completed, $637,150.
31 Cost of goods sold, $617,840.

Required:
Journalize the entries to record the summarized operations.

1 Answer

14 votes

Answer:

Mar 1

Dr Purchases 482,690

Cr Accounts payable 482,690

Mar 1

Dr Work in process 405,460

Cr Factory overhead 352,750

Cr Materials 52,710

Mar 31

Dr Work in process 402,710

Dr Factory Overhead 94,460

Cr To Wages Payable 497,170

Dr Factory Overhead 115,850

Dr Selling Expenses 178,600

Dr Administrative Expenses 106,190

Cr To Accounts Payable 100,640

Dr Factory overhead 22,200

Dr Selling expenses 18,820

Dr Administrative expenses 13,520

Cr Prepaid expenses 54,540

Dr Factory overhead 22,200

Dr Depreciation expenses 32,820

Dr Expenses on office building 64,680

Cr To Accumulated depreciation 119,700

Dr Work in process 275,130

Cr Factory overhead 275,130

Dr Finished goods 637,150

Cr Work in process 637,150

Dr Cost of goods sold 617,840

Cr Finished goods 617,840

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