Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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, $770,000. Materials requisitioned, $680,000, of which $75,800 was for general factory use. Factory labor used, $756,000, of which $182,000 was indirect. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. Prepaid expenses expired for factory overhead, $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. Factory overhead costs applied to jobs, $568,500. Jobs completed, $1,500,000. Cost of goods sold, $1,375,000. 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, $770,000. Entry Description Debit Credit a. b. Materials requisitioned, $680,000, of which $75,800 was for general factory use. Entry Description Debit Credit b. c. Factory labor used, $756,000, of which $182,000 was indirect. Entry Description Debit Credit c. d. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. Entry Description Debit Credit d. e. Prepaid expenses expired for factory overhead, $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. Entry Description Debit Credit e. f. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. Entry Description Debit Credit f. g. Factory overhead costs applied to jobs, $568,500. Entry Description Debit Credit g. h. Jobs completed, $1,500,000. Entry Description Debit Credit h. i. Cost of goods sold, $1,375,000. Entry Description Debit Credit i.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles

Authors: Nformi Eugene Tawe

1st Edition

3330651032, 978-3330651036

More Books

Students also viewed these Accounting questions