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, $639,740.

Materials requisitioned, $537,380, of which $69,860 was for general factory use.

Factory labor used, $658,930, of which $125,200 was indirect.

Other costs incurred on account for factory overhead, $153,540; selling expenses, $236,700; and administrative expenses, $140,740.

Prepaid expenses expired for factory overhead were $29,430; for selling expenses, $24,950; and for administrative expenses, $17,910.

Depreciation of factory equipment was $29,430; of office equipment, $43,500; and of office building, $85,730.

Factory overhead costs applied to jobs, $364,650.

Jobs completed, $844,460.

Cost of goods sold, $818,870.

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, $639,740.

Entry	Description	Debit	Credit
a.

b. Materials requisitioned, $537,380, of which $69,860 was for general factory use.

Entry	Description	Debit	Credit
b.

c. Factory labor used, $658,930, of which $125,200 was indirect.

Entry	Description	Debit	Credit
c.

d. Other costs incurred on account for factory overhead, $153,540; selling expenses, $236,700; and administrative expenses, $140,740.

Entry	Description	Debit	Credit
d.

e. Prepaid expenses expired for factory overhead were $29,430; for selling expenses, $24,950; and for administrative expenses, $17,910.

Entry	Description	Debit	Credit
e.

f. Depreciation of factory equipment was $29,430; of office equipment, $43,500; and of office building, $85,730.

Entry	Description	Debit	Credit
f.

g. Factory overhead costs applied to jobs, $364,650.

Entry	Description	Debit	Credit
g.

h. Jobs completed, $844,460.

Entry	Description	Debit	Credit
h.

i. Cost of goods sold, $818,870.

Entry	Description	Debit	Credit
i.

a. Materials purchased on account, $639,740 Entry Description Debit Credit Accounts Payable Cash Factory Overhead b. Mat 537,380, of which $69,860 was for general factory use. Entr scription Debit Credit -Finished Goods b. Materials Work in Process