Recording Issuing of Material:s Materials issued for the current month are as fo

Question

Recording Issuing of Material:s Materials issued for the current month are as follows: Requisition No. Materia Job No. Amount 945 946 947 948 949 Fiberglass Plastic Glue Wood 78 93 Indirect $31,328 15,308 1,700 5,607 59,541 108 a. Determine the amount of materials transferred to Work in Process and Factory Overhead for the current month. Materials transferred to Work in Process Materials transferred to Factory Overhead b. Illustrate the effect on the accounts and financial statements of the materials transferred in (a) If no account or activity is affected, select "No effect" from the drop-down list and leave the corresponding number entry box blank. Enter account d 113,484 X 113,484 X s and cash outflows as negative amounts. Balance Sheet Statement of Stockholders Assets Liabilities + Cash Flows Equity MaterialsWork in process Factory overhead No effect+ No effect Statement of Cash Flows Income Statement No effect No effect Feedback

Explanation / Answer

a.

Materials transferred directly to jobs will be considered as materials transferred to work in process and the amount of indirect materials will be considered as materials transferred to factory overhead.

Materials transferred to work in process = 31,328 + 15,308 + 5,607 + 59,541 = 111,784

Materials transferred to factory overhead = 1,700

b.

The effect on the accounts and financial statements of the materials transferred in (a) will be shown as follows:

There will be no effect on statement of cash flows, income statement, liabilities and stockholders' equity.

Balance Sheet Assets = Liabilities + Stockholders' equity Materials + WIP + Factory overhead = -113484 11784 1700

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