Amounts for Materials Cherokee Furniture Company manufactures furniture. Cheroke
ID: 2416990 • Letter: A
Question
Amounts for Materials Cherokee Furniture Company manufactures furniture. Cherokee Furniture uses a job order cost system. Balances on April l from the materials ledger are as follows: The materials purchased during April are summarized from the receiving reports as follows: Materials were requisitioned to Individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). Determine the total purchase of materials in April. Determine the amounts of materials transferred to Work In Process and Factory Overhead for the requisition of materials in April. Materials transferred to Work In Process Materials transferred to Factory Overhead Determine the April 30 balances that would be shown in the materials ledger accounts.Explanation / Answer
Caluclation of Material Cost in April (Direct & Indirect): Particulars Amount $ Fabric 67,750 Polyster filling 40,000 Lumber 92,350 Glue 8,000 Total Cost of Material Purchase 208,100 Caluclation of Material to be transferred to WIP & Factory Overhead Particulars WIP Factory Overhead Material Transferred to Job 304 35,935 Material Transferred to Job 305 59,345 Material Transferred to Job 306 97,920 Transfer to Factory Overhead 7,350 Total 193,200 7,350 Caluclation of Material Balances as on April 30 Particulars Opening (1) Added (2) Issued (3) Closing (1+2-3) Fabric 6,140 67,750 63,200 10,690 Polyster filling 5,900 40,000 41,500 4,400 Lumber 17,400 92,350 88,500 21,250 Glue 1,800 8,000 7,350 2,450 Closing balances as on April 30 Particulars Amount $ Fabric 10,690 Polyster filling 4,400 Lumber 21,250 Glue 2,450
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