Question

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   $ 66,590
Polyester filling   19,430
Lumber   153,410
Glue   6,060
The materials purchased during June are summarized from the receiving reports as follows:
Fabric   $338,750
Polyester filling   474,360
Lumber   909,440
Glue   33,420
Materials were requisitioned to individual jobs as follows:
Fabric   Polyester Filling   Lumber   Glue   Total
Job 601   $128,580   $159,190   $401,640       $ 689,410
Job 602   97,620   149,690   371,790       619,100
Job 603   94,210   116,010   210,620       420,840
Factory overhead-indirect materials               $33,320   33,320
Total   $320,410   $424,890   $984,050   $33,320   $1,762,670
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
Required:
a. Journalize the June 1 entry to record the purchase of materials in June.*
b. Journalize the June 3 entry to record the requisition of materials in June.*
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
*Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Part-a &b
S. No.	Accoutn Tittle	Debit	Credit
a	Materials	$1,755,970.00
	Accounts Payable		$1,755,970.00
b	Work in Process (bf)	$1,729,350.00
	Factory Overhead	$33,320.00
	Materials		$1,762,670.00

Part-3 Statement Showing Ending Balance of Inventory
	Beg Bal (a)	Purchased (b)	Requisitioned (c )	Ending Balance (a+b-c)
Fabric	$66,590.00	$338,750.00	$320,410.00	$84,930.00
Polyester Filling	$19,430.00	$474,360.00	$424,890.00	$68,900.00
Lumber	$153,410.00	$909,440.00	$984,050.00	$78,800.00
Glue	$6,060.00	$33,420.00	$33,320.00	$6,160.00
Tototal	$245,490.00	$1,755,970.00	$1,762,670.00	$238,790.00