Entries for Materials GenX Furnishings Company manufactures designer furniture.
ID: 2602562 • Letter: E
Question
Entries for Materials
GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
The materials purchased during June 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).
a. Journalize the entry to record the purchase of materials in June.
Feedback
a. Increase materials inventory and a liability for the total of purchases.
b. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank.
Feedback
b. Increase the work in process for direct materials for the Jobs and factory overhead for the indirect materials.
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
Fabric $23,700 Polyester filling 7,100 Lumber 53,100 Glue 2,300Explanation / Answer
a.
Journal entry to record the purchase of materials
W.N -
Total Material Purchased = $603000
[Note - Both, Direct material and Indirect material is inculded in Materials]
b.
Journal entry to record the requisition of materials
W.N - Calculation of total WIP
Job 601 = $233,700
Job 602 = $211,300
Job 603 = $136,200
Total = $581,200
[Note - requisition of direct materials are charged to WIP
And
requisition of indirect materials forms part of factory ovehead]
c.
Materials Ledger Accounts as on 30 June
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