Question

Entries for Materials

Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows:

Fabric	$26,800
Polyester filling	8,000
Lumber	60,000
Glue	2,600

The materials purchased during April on account are summarized from the receiving reports as follows:

Fabric	$134,300
Polyester filling	186,700
Lumber	368,000
Glue	12,800

Materials were requisitioned to individual jobs as follows:

	Fabric		Polyester Filling		Lumber		Glue		Total
Job 601	$48,300		$60,900		$162,800				$272,000
Job 602	37,200		66,200		142,500				245,900
Job 603	34,300		44,900		79,200				158,400
Factory overhead-indirect materials							$6,300		6,300
Total	$119,800		$172,000		$384,500		$6,300		$682,600

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 April. If an amount box does not require an entry, leave it blank.

a.	Materials
	Accounts Payable

Feedback

a. Increase materials inventory and a liability for the total of purchases.

b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank.

b.	Work in Process
	Factory Overhead
	Materials

Feedback

b. Increase the work in process for direct materials for the Jobs and factory overhead for the indirect materials.

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

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

Answer 1

a) Journal entry

a	Materials	701800
	Account payable		701800

b) Journal entry

b	Work in process	676300
	Factory overhead	6300
	Materials		682600

c) Calculate ending balance

	Fabric	Ployester filling	Lumber	Glue
Beginning balance	26800	8000	60000	2600
Purchase	134300	186700	368000	12800
Used	-119800	-172000	-384500	-6300
Ending balance	41300	22700	43500	9100