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Entries for Materials GenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system....

Entries for Materials

GenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:

Fabric $31,700
Polyester filling 9,500
Lumber 71,000
Glue 3,000

The materials purchased during June are summarized from the receiving reports as follows:

Fabric $157,200
Polyester filling 218,500
Lumber 430,700
Glue 14,900

Materials were requisitioned to individual jobs as follows:

Fabric Polyester Filling Lumber Glue Total
Job 601 $59,700 $75,200 $201,200 $336,100
Job 602 46,000 81,800 176,100 303,900
Job 603 42,400 55,500 97,900 195,800
Factory overhead-indirect materials $7,800 7,800
Total $148,100 $212,500 $475,200 $7,800 $843,600

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. Materials
Accounts Payable

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.

b. Work in Process
Factory Overhead
Materials

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 Polyester Filling Lumber Glue
Balance, June 30 $ $ $ $

Solutions

Expert Solution

Part a - Journal entry for purchase of material

Accounts Title Debit Credit
Material 821300
Accounts Payable 821300
Material Purchased on account are debited to material and credited to accounts payable as liability

Working Note 1 - Calculation of total material purchased

Particulars Amount
Fabric 157200
Polyester Filling 218500
Lumber 430700
Glue 14900
Total 821300

Part b - Journal entry for requisition of material in june

particular Debit Credit
Work in process (336100+303900+195800) 835800
Factory Overhead 7800
Materials 843600
Material requisitioned credited to material since it is sent to specific jobs for work in process

Part c - Calculation of June 30 balances of Material ledger

Particulars Fabric Polyester Filling Lumber Glue
June 1 Beginning balances 31700 9500 71000 3000
Add : Material purchased 157200 218500 430700 14900
Less : Material Requisitioned 148100 212500 475200 7800
Material balance on june 30 40800 15500 26500 10100

ekkarill92 answered 1 year ago
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