Question

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	$21,300
Polyester filling	6,400
Lumber	47,700
Glue	2,000

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

Fabric	$105,000
Polyester filling	146,000
Lumber	287,700
Glue	10,000

Materials were requisitioned to individual jobs as follows:

	Fabric		Polyester Filling		Lumber		Glue		Total
Job 601	$37,800		$47,600		$127,400				$212,800
Job 602	29,100		51,800		111,500				192,400
Job 603	26,800		35,200		62,000				124,000
Factory overhead-indirect materials							$4,900		4,900
Total	$93,700		$134,600		$300,900		$4,900		$534,100

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

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

c. Determine the June 30 balances that would be shown in the materials ledger accounts.

	Fabric	Polyester Filling	Lumber	Glue
Balance, June 30	$	$	$	$

Answer 1

Req A:
Journal Entry:
Raw material inventory Dr.			548,700
Accounts Payable				548,700
Req B:
Journal entry:
Work in process Inventory Dr.			529200
factory Overheads Dr.			4900
Raw material Inventory				534100
Req C:
			Fabric	Polyester	Lumber	Glue
Beginning balance			21300	6400	47700	2000
Add: Purchases			105000	146000	287700	10000
Total Goods available			126300	152400	335400	12000
Less: Direct material issue to Jobs			93700	134600	300900
Less: Indirect material issued						4900
Ending balance in Raw material			32600	17800	34500	7100