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 $29,300

Polyester filling 8,800

Lumber 65,600

Glue 2,800

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

Fabric $148,000

Polyester filling 205,700

Lumber 405,500

Glue 14,100

Materials were requisitioned to individual jobs as follows:

Fabric Polyester Filling Lumber Glue Total

Job 601 $56,200 $70,800 $189,400 $316,400

Job 602 43,300 77,000 165,800 286,100

Job 603 39,900 52,300 92,200 184,400

Factory overhead-indirect materials $7,300 7,300

Total $139,400 $200,100 $447,400 $7,300 $794,200

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.-------------

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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. ------------

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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

(a): Preparation of journal entry to record the purchase of materials in june
Date	Accout Tittle & Explanation	Debit	Credit
june,1	Raw materials - Fabric A/C	$148000
	Raw materials - Polyester A/C	$205700
	Raw materials - Lumber A/C	$405500
	Raw materials - Glue A/C	$14100
	Accounts payable A/c		$773300
	(Being materials purchased in june)
(b): Preparation of journal entry to record the requisitionof materials in june
Date	Accout Tittle & Explanation	Debit	Credit
june, 1	Work in process - job 601 A/c	$316,400
	Raw materials - Fabric A/C		$56,200
	Raw materials - Polyester A/C		$70,800
	Raw materials - Lumber A/C		$189,400
	Work in process - job 602 A/c	$286,100
	Raw materials - Fabric A/C		$43,300
	Raw materials - Polyester A/C		$77,000
	Raw materials - Lumber A/C		$165,800
	Work in process - job 603 A/c	$184,400
	Raw materials - Fabric A/C		$39,900
	Raw materials - Polyester A/C		$52,300
	Raw materials - Lumber A/C		$92,200
	Factory Overhead A/c	$7,300
	Raw material - Glue A/c		$7,300
C: Determination of balances on june 30
	Particulars	Fabric	Polyester($)	Lumber($)	Glue($)
	Beginning inventory on June ,1	$29,300	$8,800	$65,600	$2,800
	(+) purchases	$148,000	$205,700	$405,500	$14,100
		$177,300	$214,500	$471,100	$16,900
	(-) Issued to production	$139,400	$200,100	$447,400	$7,300
	Ending inventory on June 30	$37,900	$14,400	$23,700	$9,600