Question

During the current month, a company that uses job order costing purchases $50,000 in raw materials for cash. It then uses $12,000 of raw materials indirectly as factory supplies and uses $32,000 of raw materials as direct materials. Prepare journal entries to record these three transactions. View transaction list Journal entry worksheet < 1 2 3 Record the raw materials purchase for $50,000, paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

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Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Transaction Debit Credit 50000 General Journal 1 Raw Material Inventroy Cash (To record raw material inventory purchased) 50000 12000 2 Manufacturing overheads Raw material inventory (To record indirect material issued to production) 12000 32000 3 Work in Process Inventory Raw material inventory |( To record direct material issued to production) 32000 Note The naration given below thw journal entry are just for understanding and can be used if required. Note Indirect material are transferred to manufacturing overheads and direct material are transferred to work in process inventory