In: Accounting
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:
Fabric | $18,400 |
Polyester filling | 5,500 |
Lumber | 41,200 |
Glue | 1,800 |
The materials purchased during June are summarized from the receiving reports as follows:
Fabric | $95,500 |
Polyester filling | 132,700 |
Lumber | 261,700 |
Glue | 9,100 |
Materials were requisitioned to individual jobs as follows:
Fabric | Polyester Filling | Lumber | Glue | Total | ||||||
Job 601 | $36,300 | $45,700 | $122,300 | $204,300 | ||||||
Job 602 | 28,000 | 49,700 | 107,100 | 184,800 | ||||||
Job 603 | 25,800 | 33,800 | 59,500 | 119,100 | ||||||
Factory overhead-indirect materials | $4,700 | 4,700 | ||||||||
Total | $90,100 | $129,200 | $288,900 | $4,700 | $512,900 |
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.
a. | fill in the blank db345b027fe1fa8_2 | ||
fill in the blank db345b027fe1fa8_4 |
b. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank.
b. | fill in the blank a2367e0e7fd1048_2 | fill in the blank a2367e0e7fd1048_3 | |
fill in the blank a2367e0e7fd1048_5 | fill in the blank a2367e0e7fd1048_6 | ||
fill in the blank a2367e0e7fd1048_8 | fill in the blank a2367e0e7fd1048_9 |
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
Fabric | Polyester Filling | Lumber | Glue | |
Balance, June 30 | $fill in the blank 054b7903a026022_1 | $fill in the blank 054b7903a026022_2 | $fill in the blank 054b7903a026022_3 | $fill in the blank 054b7903a026022_4 |
(a): Preparation of journal entry to record the purchase of materials in June | |||||
Date | Accout Tittle & Explanation | Debit | Credit | ||
Raw materials - Fabric A/C | 95,500 | ||||
Raw materials - Polyester A/C | 132,700 | ||||
Raw materials - Lumber A/C | 261,700 | ||||
Raw materials - Glue A/C | 9,100 | ||||
Accounts payable A/c | 499,000 | ||||
(Being materials purchased in june) | |||||
(b): Preparation of journal entry to record the requisitionof materials in june | |||||
Date | Accout Tittle & Explanation | Debit | Credit | ||
Work in process - job 601 A/c | 204,300 | ||||
Raw materials - Fabric A/C | 36,300 | ||||
Raw materials - Polyester A/C | 45,700 | ||||
Raw materials - Lumber A/C | 122,300 | ||||
Work in process - job 602 A/c | 184,800 | ||||
Raw materials - Fabric A/C | 28,000 | ||||
Raw materials - Polyester A/C | 49,700 | ||||
Raw materials - Lumber A/C | 107,100 | ||||
Work in process - job 603 A/c | 119,100 | ||||
Raw materials - Fabric A/C | 25,800 | ||||
Raw materials - Polyester A/C | 33,800 | ||||
Raw materials - Lumber A/C | 59,500 | ||||
Factory Overhead A/c | 4,700 | ||||
Raw material - Glue A/c | 4,700 | ||||
C: Determination of balances on June 30 | |||||
Particulars | Fabric | Polyester | Lumber | Glue | |
Beginning inventory on June ,1 | 18,400 | 5,500 | 41,200 | 1,800 | |
(+) Purchases | 95,500 | 132,700 | 261,700 | 9,100 | |
113,900 | 138,200 | 302,900 | 10,900 | ||
(-) Issued to production | -90,100 | -129,200 | -288,900 | -4,700 | |
Ending inventory on June 30 | 23,800 | 9,000 | 14,000 | 6,200 | |