Question

BE 16-1 Issuance of materials Obj. 2 On May 7, Bergan Company purchased on account 10.000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 weits for Job 200 at $8 per unit and 1.480 units for Job 305 at $5 per unit Journalive the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom.

Answer 1

Answer

--Required journal entries

Date	Accounts title	Debit	Credit
May-07	Material inventory [or Raw material inventory]	$80,000
	Accounts Payable		$80,000
	(to record purchase 10000 units x $ 8)
May-31	Work in Process Inventory	$67,400
	Material inventory [or Raw material inventory]		$67,400
	(to record requisition - [7500 x 8 ] + [1480 x 5])