Question

During June, Briganti Corporation purchased $97,000 of raw materials on credit to add to its raw materials inventory. A total of $82,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials included $22,000 of indirect materials.

Required:

Prepare journal entries to record the purchase of materials and their use in production.

Answer 1

Answer:

Journal entry to record Purchase of Materials

Date	Particulars	Debit($)	Credit($)
	Raw material Inventory	97,000
	Accounts Payable		97,000
	(Being Raw materials purchased on credit and added to the inventory)

Journal entry to record the materials used in production

Date	Particulars	Debit ($)	credit($)
	Work in process inventory	60,000
	Raw Materials Inventory		60,000
	(Being direct material requisitioned for use in production)
	Manufacturing overhead	22,000
	Raw material inventory (Being indirect material requisitioned for use in production)		22,000