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Entries for Costs in Job Order Costing

Royal Technology Company uses job order costing. The following data summarize the operations related to production for March:

1. Materials purchased on account, $834,900.
2. Materials requisitioned, $701,320, of which $91,170 was for general factory use.
3. Factory labor used, $859,950, of which $163,390 was indirect.
4. Other costs incurred on account for factory overhead, $200,380; selling expenses, $308,910; and administrative expenses, $183,680.
5. Prepaid expenses expired for factory overhead were $38,410; for selling expenses, $32,560; and for administrative expenses, $23,380.
6. Depreciation of factory equipment was $38,410; of office equipment, $56,770; and of office building, $111,880.
7. Factory overhead costs applied to jobs, $475,890.
8. Jobs completed, $1,102,070.
9. Cost of goods sold, $1,068,670.

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, $834,900.

Entry	Description	Debit	Credit
a.	Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 2	fill in the blank 3
	Accounts PayableFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 5	fill in the blank 6

b. Materials requisitioned, $701,320, of which $91,170 was for general factory use.

Entry	Description	Debit	Credit
b.	Accounts PayableCashFinished GoodsMaterialsWork in Process	fill in the blank 8	fill in the blank 9
	CashFactory OverheadFinished GoodsMaterialsSelling Expenses	fill in the blank 11	fill in the blank 12
	Finished GoodsCashFactory OverheadMaterialsWork in Process	fill in the blank 14	fill in the blank 15

c. Factory labor used, $859,950, of which $163,390 was indirect.

Entry	Description	Debit	Credit
c.	CashFinished GoodsMaterialsWages PayableWork in Process	fill in the blank 17	fill in the blank 18
	Accounts PayableCashFinished GoodsFactory OverheadWages Payable	fill in the blank 20	fill in the blank 21
	Accounts PayableCashFactory OverheadWages PayableWork in Process	fill in the blank 23	fill in the blank 24

d. Other costs incurred on account for factory overhead, $200,380; selling expenses, $308,910; and administrative expenses, $183,680.

Entry	Description	Debit	Credit
d.	Accounts PayableCashFactory OverheadMaterialsPrepaid Expenses	fill in the blank 26	fill in the blank 27
	CashCost of Goods SoldFinished GoodsSelling ExpensesWork in Process	fill in the blank 29	fill in the blank 30
	Administrative ExpensesCashFinished GoodsMaterialsWork in Process	fill in the blank 32	fill in the blank 33
	Administrative ExpensesAccounts PayableCashFactory OverheadSelling Expenses	fill in the blank 35	fill in the blank 36

e. Prepaid expenses expired for factory overhead were $38,410; for selling expenses, $32,560; and for administrative expenses, $23,380.

Entry	Description	Debit	Credit
e.	CashFactory OverheadFinished GoodsPrepaid ExpensesWork in Process	fill in the blank 38	fill in the blank 39
	Cost of Goods SoldFinished GoodsMaterialsPrepaid ExpensesSelling Expenses	fill in the blank 41	fill in the blank 42
	Administrative ExpensesCashFinished GoodsPrepaid ExpensesWork in Process	fill in the blank 44	fill in the blank 45
	Administrative ExpensesCashFactory OverheadPrepaid ExpensesSelling Expenses	fill in the blank 47	fill in the blank 48

f. Depreciation of factory equipment was $38,410; of office equipment, $56,770; and of office building, $111,880.

Entry	Description	Debit	Credit
f.	Accumulated Depreciation-Buildings and EquipmentCashFactory OverheadFinished GoodsWork in Process	fill in the blank 50	fill in the blank 51
	Accumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office EquipmentFinished GoodsMaterials	fill in the blank 53	fill in the blank 54
	Accumulated Depreciation-Buildings and EquipmentCashDepreciation Expense-Office BuildingFinished GoodsWork in Process	fill in the blank 56	fill in the blank 57
	Accumulated Depreciation-Buildings and EquipmentDepreciation Expense-Office EquipmentDepreciation Expense-Office BuildingFactory OverheadFinished Goods	fill in the blank 59	fill in the blank 60

g. Factory overhead costs applied to jobs, $475,890.

Entry	Description	Debit	Credit
g.	CashFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 62	fill in the blank 63
	CashFactory OverheadFinished GoodsMaterialsWork in Process	fill in the blank 65	fill in the blank 66

h. Jobs completed, $1,102,070.

Entry	Description	Debit	Credit
h.	Accounts PayableCost of Goods SoldFinished GoodsMaterialsWork in Process	fill in the blank 68	fill in the blank 69
	Accounts PayableCashFactory OverheadFinished GoodsWork in Process	fill in the blank 71	fill in the blank 72

i. Cost of goods sold, $1,068,670.

Entry	Description	Debit	Credit
i.	CashCost of Goods SoldFinished GoodsFactory OverheadWork in Process	fill in the blank 74	fill in the blank 75
	Accounts ReceivableCashCost of Goods SoldFinished GoodsMaterials	fill in the blank 77	fill in the blank 78

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