Question Completion:
Journalize the entries to record the summarized operations.
Answer:
Royal Technology Company
Journal Entries:
Debit Materials $496,110
Credit Accounts Payable $496,110
To record the purchase of materials on account.
Debit Work in Process $362,560
Debit Factory Overhead $54,170
Credit Materials $416,730
To record materials requisitioned for production and general factory use.
Debit Work in Process $413,900
Debit Factory Overhead $97,090
Credit Factory labor $510,990
To record factory labor used in production.
Debit Factory Overhead $119,070
Debit Selling Expenses $183,560
Debit Administrative Expenses $109,140
Credit Accounts Payable $411,770
To record costs incurred on account.
Debit Factory Overhead $22,820
Debit Selling Expenses $19,350
Debit Administrative Expense $13,890
Credit Prepaid Expenses $56,060
To record expired prepaid expenses.
Debit Factory Overhead $22,820
Debit Depreciation Expense - Office Equipment $33,740
Debit Depreciation Expense - Office Building $66,480
Credit Depreciation Expenses $123,040
To allocate depreciation expenses.
Debit Work in Process $282,780
Credit Factory Overhead $282,780
To record overhead costs applied to jobs.
Debit Finished Goods Inventory $654,870
Credit Work in Process $654,870
To transfer completed jobs to the finished goods inventory.
Debit Cost of Goods Sold $635,020
Credit Finished Goods Inventory $635,020
To record the cost of goods sold.
Explanation:
Journal entries are made when a transaction is initially recorded. They show the accounts to be debited and the ones to be credited.
