Question

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Recording Issuing of Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 945 Fiberglass 78 $23,936 946 Plastic 93 11,696 947 Glue Indirect 1,299 948 Wood 99 4,284 949 Aluminium 108 45,492 a. Determine the amount of materials transferred to Work in Process and Factory Overhead for the current month. Materials transferred to Work in Process Materials transferred to Factory Overhead Þ. Illustrate the effect on the accounts and financial statements of the materials transferred in If no account or activity is affected, select "No effect" from the drop-down list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts

Answer 1

Part a –

Materials transferred to Work in Process = $85,408

Direct materials are transferred from Raw material inventory to Work in process inventory.

Requisition No.	Material	Job No.	Amount
945	Fiberglass	78	$23,936
946	Plastic	93	$11,696
948	Wood	99	$4,284
949	Aluminium	108	$45,492
			$85,408

Materials transferred to Factory Overhead (Indirect materials) = $1,299

Part b –

Statement of Cash Flow – No effect – Amount column -blank

Assets

Raw materials inventory – Decrease by ($86,707)

Work in Process Inventory – Increase by $85,408

Liabilities – No Effect

Stockholders’ Equity – Decrease – by ($1,299)

Income Statement – Decrease – by ($1,299)

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