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.

Required:
Journalize the entries to record the summarized operations.

See the journal entries below.

Explanation:

The journal entries will look as follows:

Date      Account Title                           Debit ($)           Credit ($)        

Mar. 1     Materials                                    770,000

              Accounts payable                                             770,000

             (To record materials purchased on account.)                            

Mar. 2    Factory Overhead                        75,800

              Work in process                         604,200

                Materials                                                           680,000

              (To record materials requisition.)                                                

Mar. 31  Factory Overhead                        182,000

             Work in process                           574,000

               Wages payable                                                 756,000

              (To record materials wages payable.)                                        

Mar. 31  Factory Overhead                       245,000

             Selling expenses                           171,500

             Administrative expenses             110,600

                Accounts payable                                              527,500

              (To record other costs incurred on account.)                              

Mar. 31  Factory Overhead                          24,500

             Selling expenses                            28,420

             Administrative expenses                16,660

                Accounts payable                                               69,580

              (To record prepaid expenses expired.)                                      

Mar. 31  Depreciation expenses                 126,200

               Accumulated dep. - Equp. & Buil.                      126,200

              (To record depreciation expenses for equipment and building.) 

Mar. 31    Work in process                           568,500

                 Factory Overhead                                             568,500

              (To record factory overhead costs applied.)                                  

Mar. 31   Finished goods                           1,500,000

                 Work in process                                              1,500,000

              (To record jobs completed.)                                                           

Mar. 31   Cost of goods sold                     1,375,000

                 Finished goods                                               1,375,000

              (To record cost of goods sold.)                                                       

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;