On May 7, Bergan Company purchased on account 59,600 units of raw materials at $

Question

On May 7, Bergan Company purchased on account 59,600 units of raw materials at $11.00 per unit. During May, raw materials were requisitioned for production as follows: 24,000 units for Job 200 at $9.00 per unit and 26,700 units for Job 305 at $11.00 per unit.

Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTSBergan CompanyGeneral Ledger

Interest Expense

Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.

ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory

Explanation / Answer

SOLUTION

Date Account titles and Explanations Debit ($) Credit ($) May 7 Materials (59,600 * $11) 655,600 Accounts payable 655,600 (To record the purchases) May 31 Work in process [(24,000*$9) + (26,700*$11)] 509,700 Materials 509,700 (To record the requisitions from storeroom)

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