Question

Basic Exercises Exercises and Problems20200615_0055.pdf (174 KB) Page > of 5 ZOOM + ✓ c. fabric, $68,300 SHOW ME HOW EX 16-5 Entries for materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a Obj. 2 job order cost system. Balances on April 1 from the materials ledger are as follows: Fabric $58,300 Polyester filling 30,000 Lumber 58,800 Glue 9,950 The materials purchased during April are summarized from the receiving reports as follows: Fabric $820,000 Polyester filling 315,000 Lumber 555.000 Glue 80,000 Materials were requisitioned to individual jobs as follows: Polyester Fabric Filling Lumber Total Job 601 $190,000 $ 66,200 $118.500 $ 374,700 Job 602 365,000 152.100 219,300 736,400 Job 603 255.000 101,700 196,200 552.900 Factory overhead-Indirect $83,600 materials 83.600 $810,000 Total $320,000 $534.000 $83.600 $1,747,600 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. b. Journalize the entry to record the requisition of materials in April. c. Determine the April 30 balances that would be shown in the materials ledger accounts. Glue Next

Answer 1

16-5
a.

Account Titles	Debit	Credit
Raw Material Inventory	$ 1,770,000
Accounts Payable		$ 1,770,000

b.

Account Titles	Debit	Credit
Work in Process Inventory	$ 1,664,000
Factory Overhead	$        83,600
Raw Material Inventory		$ 1,747,600

c.

	Fabric	Polyester	Lumber	Glue
Beginning Balance	$        58,300	$        30,000	$        58,800	$              9,950
Purchases	$      820,000	$      315,000	$      555,000	$           80,000
Requisition	$    (810,000)	$    (320,000)	$    (534,000)	$          (83,600)
Ending Balance	$        68,300	$        25,000	$        79,800	$             6,350

	Account Titles	Debit	Credit
a	Raw Material Inventory	$      315,500
	Accounts Payable		$      315,500
b	Work in Process Inventory	$      281,950
	Factory Overhead	$          8,150
	Raw Material Inventory		$      290,100
c	Work in Process Inventory	$      455,300
	Factory Overhead	$        34,200
	Wages Payable		$      489,500
d	Factory Overhead	$      600,000
	Selling Expenses	$      150,000
	Administrative Expenses	$      100,000
	Accounts Payable		$      850,000
e	Factory Overhead	$        18,000
	Selling Expenses	$          6,000
	Administrative Expenses	$          5,000
	Prepaid Expenses		$        29,000
f	Factory Overhead	$        60,000
	Administrative Expenses	$        37,500
	Acc Depreciation - Office Building		$        30,000
	Acc Depreciation - Office Equipment		$          7,500
	Acc Depreciation - Factory Equipment		$        60,000
g	Work in Process Inventory	$      711,600
	Factory Overhead		$      711,600
h	Finished Goods Inventory	$ 1,425,000
	Work in Process Inventory		$ 1,425,000
i	Cost of Goods Sold	$ 1,380,000
	Finished Goods Inventory		$ 1,380,000

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