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.

Entry	Description	Debit	Credit
a.	Materials
	Accounts Payable

b. Materials requisitioned, $414,080, of which $53,830 was for general factory use.

Entry	Description	Debit	Credit
b.	Work in Process
	Factory Overhead
	Materials

c. Factory labor used, $507,740, of which $96,470 was indirect.

Entry	Description	Debit	Credit
c.	Work in Process
	Factory Overhead
	Wages Payable

d. Other costs incurred on account for factory overhead, $118,310; selling expenses, $182,390; and administrative expenses, $108,450.

Entry	Description	Debit	Credit
d.	Factory Overhead
	Selling Expenses
	Administrative Expenses
	Accounts Payable

e. Prepaid expenses expired for factory overhead were $22,680; for selling expenses, $19,230; and for administrative expenses, $13,800.

Entry	Description	Debit	Credit
e.	Factory Overhead
	Selling Expenses
	Administrative Expenses
	Prepaid Expenses

f. Depreciation of factory equipment was $22,680; of office equipment, $33,520; and of office building, $66,060.

Entry	Description	Debit	Credit
f.	Factory Overhead
	Depreciation Expense-Office Equipment
	Depreciation Expense-Office Building
	Accumulated Depreciation-Buildings and Equipment

g. Factory overhead costs applied to jobs, $280,980.

Entry	Description	Debit	Credit
g.	Work in Process
	Factory Overhead

h. Jobs completed, $650,690.

Entry	Description	Debit	Credit
h.	Finished Goods
	Work in Process

i. Cost of goods sold, $630,980.

Entry	Description	Debit	Credit
i.	Cost of Goods Sold
	Finished Goods