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:

1. Materials purchased on account, $529,890.
2. Materials requisitioned, $445,110, of which $57,860 was for general factory use.
3. Factory labor used, $545,790, of which $103,700 was indirect.
4. Other costs incurred on account for factory overhead, $127,170; selling expenses, $196,060; and administrative expenses, $116,580.
5. Prepaid expenses expired for factory overhead were $24,370; for selling expenses, $20,670; and for administrative expenses, $14,840.
6. Depreciation of factory equipment was $24,370; of office equipment, $36,030; and of office building, $71,010.
7. Factory overhead costs applied to jobs, $302,040.
8. Jobs completed, $699,450.
9. Cost of goods sold, $678,260.

Required:

Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $529,890.

Entry	Description	Debit	Credit
a.	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in Process
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in Process

b. Materials requisitioned, $445,110, of which $57,860 was for general factory use.

Entry	Description	Debit	Credit
b.	Accounts PayableCashCost of Goods SoldFinished GoodsMaterialsWork in Process
	Administrative ExpensesCashFactory OverheadFinished GoodsMaterialsSelling Expenses
	Finished GoodsCashCost of Goods SoldFactory OverheadMaterialsWork in Process

c. Factory labor used, $545,790, of which $103,700 was indirect.

Entry	Description	Debit	Credit
c.	Accounts PayableCashFinished GoodsMaterialsWages PayableWork in Process
	Accounts PayableCashCost of Goods SoldFinished GoodsFactory OverheadWages Payable
	Accounts PayableCashCost of Goods SoldFactory OverheadWages PayableWork in Process

d. Other costs incurred on account for factory overhead, $127,170; selling expenses, $196,060; and administrative expenses, $116,580.

Entry	Description	Debit	Credit
d.	Accounts PayableAccounts ReceivableCashFactory OverheadMaterialsPrepaid Expenses
	Accounts PayableCashCost of Goods SoldFinished GoodsSelling ExpensesWork in Process
	Accounts PayableAdministrative ExpensesCashFinished GoodsMaterialsWork in Process
	Administrative ExpensesAccounts PayableAccounts ReceivableCashFactory OverheadSelling Expenses

e. Prepaid expenses expired for factory overhead were $24,370; for selling expenses, $20,670; and for administrative expenses, $14,840.

Entry	Description	Debit	Credit
e.	Accounts ReceivableCashFactory OverheadFinished GoodsPrepaid ExpensesWork in Process
	CashCost of Goods SoldFinished GoodsMaterialsPrepaid ExpensesSelling Expenses
	Accounts PayableAdministrative ExpensesCashFinished GoodsPrepaid ExpensesWork in Process
	Accounts ReceivableAdministrative ExpensesCashFactory OverheadPrepaid ExpensesSelling Expenses

f. Depreciation of factory equipment was $24,370; of office equipment, $36,030; and of office building, $71,010.

Entry	Description	Debit	Credit
f.	Accumulated Depreciation-Buildings and EquipmentCashCost of Goods SoldFactory OverheadFinished GoodsWork in Process
	Accumulated Depreciation-Buildings and EquipmentCashFinished GoodsDepreciation Expense-Office EquipmentFinished GoodsMaterials
	Accounts PayableAccumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office BuildingFinished GoodsWork in Process
	Accumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory OverheadFinished Goods

g. Factory overhead costs applied to jobs, $302,040.

Entry	Description	Debit	Credit
g.	Accounts ReceivableCashFactory OverheadFinished GoodsMaterialsWork in Process
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in Process

h. Jobs completed, $699,450.

Entry	Description	Debit	Credit
h.	Accounts PayableCashCost of Goods SoldFinished GoodsMaterialsWork in Process
	Accounts ReceivableAccounts PayableCashFactory OverheadFinished GoodsWork in Process

i. Cost of goods sold, $678,260.

Entry	Description	Debit	Credit
i.	Accounts ReceivableCashCost of Goods SoldFinished GoodsFactory OverheadWork in Process
	Accounts PayableAccounts ReceivableCashCost of Goods SoldFinished GoodsMaterials