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Umnica [9.8K]
2 years ago
13

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: Materials purchased on account, $496,110. Materials requisitioned, $416,730, of which $54,170 was for general factory use. Factory labor used, $510,990, of which $97,090 was indirect. Other costs incurred on account for factory overhead, $119,070; selling expenses, $183,560; and administrative expenses, $109,140. Prepaid expenses expired for factory overhead were $22,820; for selling expenses, $19,350; and for administrative expenses, $13,890. Depreciation of factory equipment was $22,820; of office equipment, $33,740; and of office building, $66,480. Factory overhead costs applied to jobs, $282,780. Jobs completed, $654,870. Cost of goods sold, $635,020. Required:
Business
1 answer:
Nutka1998 [239]2 years ago
4 0

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.

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Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 90
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Answer:

$1905

Explanation:

Here we will have to calculate Economic Order Quantity to lower the ordering ordering and holding cost as much as we can. So here we will use the following formula to calculate the best number of units that we should order, which is as under:

Economic Order Quantity = SquareRoot (2 * Annual Demand * ordering cost per order / Holding cost per unit per year)

Here

Annual Demand = 900kg of palm oil per day  * 52 weeks *  5 day a week / 7

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4 0
3 years ago
A company paid $0.58 in cash dividends per share. Its earnings per share is $4.30 and its market price per share is $28.75. Its
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Answer:

a) 2.02%

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merchandise is sold for cash. the selling price of the merchandise is $2,600, and the sale is subject to a 6% state sales tax. t
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The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the retailer, and paid to the government. Companies must first apply for a sales tax permit from their state's department of taxation in order to be able to collect sales tax from customers. Every time a customer makes a purchase, businesses collect sales tax, which they subsequently monthly or quarterly send to the state.

As the selling price of the merchandise is $2,600 and the state sales tax is 6%, this means that 6% of $2,600 has to be paid to the state governing body.

Sales tax = 6% of 2600

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Sales tax = 0.06 × 2600

Sales tax = $156

Therefore; the entry to journalize the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

To know more about  sales tax refer:

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Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consiste
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Answer:

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Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.

A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise  such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.

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