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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, $599,490.
Materials requisitioned, $503,570, of which $65,460 was for general factory use.
Factory labor used, $617,470, of which $117,320 was indirect.
Other costs incurred on account for factory overhead, $143,880; selling expenses, $221,810; and administrative expenses, $131,890.
Prepaid expenses expired for factory overhead were $27,580; for selling expenses, $23,380; and for administrative expenses, $16,790.
Depreciation of factory equipment was $27,580; of office equipment, $40,770; and of office building, $80,330.
Factory overhead costs applied to jobs, $341,710.
Jobs completed, $791,330.
Cost of goods sold, $767,350.
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, $599,490.
| Entry | Description | Debit | Credit |
| a. | | | |
| | | | |
b. Materials requisitioned, $503,570, of which $65,460 was for general factory use.
| Entry | Description | Debit | Credit |
| b. | | | |
| | | | |
| | | | |
c. Factory labor used, $617,470, of which $117,320 was indirect.
| Entry | Description | Debit | Credit |
| c. | | | |
| | | | |
| | | | |
d. Other costs incurred on account for factory overhead, $143,880; selling expenses, $221,810; and administrative expenses, $131,890.
| Entry | Description | Debit | Credit |
| | | | |
| d. | | | |
| | | | |
| | | | |
| | | | |
e. Prepaid expenses expired for factory overhead were $27,580; for selling expenses, $23,380; and for administrative expenses, $16,790.
| Entry | Description | Debit | Credit |
| e. | | | |
| | | | |
| | | | |
| | | | |
f. Depreciation of factory equipment was $27,580; of office equipment, $40,770; and of office building, $80,330.
| Entry | Description | Debit | Credit |
| f. | | | |
| | | | |
| | | | |
| | | | |
g. Factory overhead costs applied to jobs, $341,710.
| Entry | Description | Debit | Credit |
| g. | | | |
| | | | |
h. Jobs completed, $791,330.
| Entry | Description | Debit | Credit |
| h. | | | |
| | | | |
i. Cost of goods sold, $767,350.
| Entry | Description | Debit | Credit |
| i. | | | |
| | | | |
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