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Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on...

Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on April 1 from the materials ledger are as follows:

Fabric $ 67,500
Polyester filling 20,200
Lumber 150,000
Glue 6,550

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

Fabric $338,400
Polyester filling 470,400
Lumber 902,400
Glue 32,400

Materials were requisitioned to individual jobs as follows:

Fabric Polyester Filling Lumber Glue Total
Job 81 $127,400 $160,800 $401,200 $ 689,400
Job 82 97,200 145,200 375,000 617,400
Job 83 91,200 118,400 210,000 419,600
Factory overhead-indirect materials $34,800 34,800
Total $315,800 $424,400 $986,200 $34,800 $1,761,200

The glue is not a significant cost, so it is treated as indirect materials (factory overhead).

Required:

A. Journalize the April 1 entry to record the purchase of materials in April.*
B. Journalize the April 3 entry to record the requisition of materials in April.*
C. Determine the April 30 balances that would be shown in the materials ledger accounts.
* Refer to the Chart of Accounts for exact wording of account titles.

Solutions

Expert Solution

A April 1 entry to record the purchase of materials in April.
ACCOUNT TITLES DEBIT CREDIT
Raw Materials Inventory $1,743,600 (338400+470400+902400+32400)
Accounts Payable $1,743,600
B April 3 entry to record the requisition of materials in April
ACCOUNT TITLES DEBIT CREDIT
Work in process inventory $1,726,400 (689400+617400+419600)
Manufacturing Overhead $34,800
Raw Materials Inventory $1,761,200
C April 30 balances that would be shown in the materials ledger accounts
RAW MATERIALS ACCOUNT
DEBIT CREDIT
Opening inventory $244,250 (67500+20200+150000+6550)
Accounts Payable $1,743,600
Work in process $1,726,400
Manufacturing Overhead $34,800
Closing Inventory $226,650
Total $1,987,850 $1,987,850
April 30 balances that would be shown in the materials ledger accounts $226,650

ekkarill92 answered 10 months ago
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