Question

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.

Answer 1

Answer:

To Determine

Job order costing

Job order cost system provides a separate record of each particular quantity of product that passes through the factory. Each quantity that is manufactured in the business is known as job. Job order costing is used when the product produced are significantly different from each other.

To record: the journal entry to record all the summarized operations.

View image for journalized entry.