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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