Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:
| Mar. |
1 |
Materials purchased on account, $770,000. |
|
2 |
Materials requisitioned, $680,000, of which $75,800 was for general factory use. |
|
31 |
Factory labor used, $756,000, of which $182,000 was indirect. |
|
31 |
Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. |
|
31 |
Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. |
|
31 |
Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. |
|
31 |
Factory overhead costs applied to jobs, $568,500. |
|
31 |
Jobs completed, $1,500,000. |
|
31 |
Cost of goods sold, $1,375,000. |
Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.
| CHART OF ACCOUNTS |
| Royal Technology Company |
| General Ledger |
|
ASSETS |
| 110 |
Cash |
| 121 |
Accounts Receivable |
| 125 |
Notes Receivable |
| 126 |
Interest Receivable |
| 131 |
Materials |
| 132 |
Work in Process |
| 133 |
Factory Overhead |
| 134 |
Finished Goods |
| 141 |
Supplies |
| 142 |
Prepaid Insurance |
| 143 |
Prepaid Expenses |
| 181 |
Office Building |
| 191 |
Office Equipment |
| 192 |
Accumulated Depreciation-Buildings and Equipment |
|
LIABILITIES |
| 210 |
Accounts Payable |
| 221 |
Utilities Payable |
| 231 |
Notes Payable |
| 236 |
Interest Payable |
| 241 |
Lease Payable |
| 251 |
Wages Payable |
| 252 |
Consultant Fees Payable |
|
EQUITY |
| 311 |
Common Stock |
| 340 |
Retained Earnings |
| 351 |
Dividends |
| 390 |
Income Summa |
|
