Please solve Entries for costs in a job order cost systemRoyal Technology Company uses a job order cost system. The following data summarize theoperations related to production for March:1. Materials purchased on account, $770,000.2. Materials requisitioned, $680,000, of which $75,800 was for general factory use.3. Factory labor used, $756,000, of which $182,000 was indirect.4. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500;and administrative expenses, $110,600.5. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420;and for administrative expenses, $16,660.6. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of officebuilding, $14,90.7. Factory overhead costs applied to jobs, $568,500.8. Jobs completed, $1,500,000.9. Cost of goods sold, $1,375,000.InstructionsJournalize the entries to record the summarized operations.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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, $770,000.
2. Materials requisitioned, $680,000, of which $75,800 was for general factory use.
3. Factory labor used, $756,000, of which $182,000 was indirect.
4. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500;
and administrative expenses, $110,600.
5. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420;
and for administrative expenses, $16,660.
6. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office
building, $14,90.
7. Factory overhead costs applied to jobs, $568,500.
8. Jobs completed, $1,500,000.
9. Cost of goods sold, $1,375,000.
Instructions
Journalize the entries to record the summarized operations.

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Step 1

Journal entries are prepared to record the financial and non financial transactions of the business and it has two sides debit and credit which should be always equal.

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