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, $591,670.

Materials requisitioned, $497,000, of which $64,610 was for general factory use.

Factory labor used, $609,420, of which $115,790 was indirect.

Other costs incurred on account for factory overhead, $142,000; selling expenses, $218,920; and administrative expenses, $130,170.

Prepaid expenses expired for factory overhead were $27,220; for selling expenses, $23,080; and for administrative expenses, $16,570.

Depreciation of factory equipment was $27,220; of office equipment, $40,230; and of office building, $79,280.

Factory overhead costs applied to jobs, $337,250.

Jobs completed, $781,000.

Cost of goods sold, $757,340.

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, $591,670.

Entry	Description	Debit	Credit
a.	Materials
	Accounts Payable

b. Materials requisitioned, $497,000, of which $64,610 was for general factory use.

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

c. Factory labor used, $609,420, of which $115,790 was indirect.

Entry

Description

Debit

Credit

c.

Work in Process

Factory Overhead

Wages Payable

d. Other costs incurred on account for factory overhead, $142,000; selling expenses, $218,920; and administrative expenses, $130,170.

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

e. Prepaid expenses expired for factory overhead were $27,220; for selling expenses, $23,080; and for administrative expenses, $16,570.

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

f. Depreciation of factory equipment was $27,220; of office equipment, $40,230; and of office building, $79,280.

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, $337,250.

Entry	Description	Debit	Credit
g.	Work in Process
	Factory Overhead

h. Jobs completed, $781,000.

Entry	Description	Debit	Credit
h.	Finished Goods
	Work in Process

i. Cost of goods sold, $757,340.

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