Question

on August 2nd, A Good Business Co. purchased on account 16,000 pounds of raw materials at $10.00 per pound.

A.) Journalize the entry to record the purchases of materials

B.) On August 21st, Job 29 requisitioned 6,000 pounds of raw materials at $9.00 per pound. Journalized the entry to record the requisition of materials

C.) In August, A Good Business Co. accumulated 2,800 hours of direct labor on Job 29 at $18.00 per hour. Journalize the entry to record the labor costs

Answer 1

	Account title and explanation	Debit	Credit
A	Raw materials inventory [16000 x $10.00]	$160,000
	Accounts payable		$160,000
	[To record purchase of raw materials on account]
B	Work in process inventory [6000 x $9]	$54,000
	Raw materials inventory		$54,000
	[To record material requisition for Job 29]
C	Work in process inventory [2,800 x $18]	$50,400
	Wages payable		$50,400
	[To record direct labor for Job 29]