Question

Issuance of Materials On May 7, Darling Company purchased on account 770 units of raw materials at $11 per unit. During May, raw materials were requisitioned for production as follows: 239 units for Job 200 at $8 per unit and 370 units for Job 305 at $11 per unit. Journalize the entry on May 7 to record the purchase. If an amount box does not require an entry, leave it blank. May 7 Journalize the entry on May 31 to record the requisition from the materials storeroom. If an amount box does not require an entry, leave it blank. May 31

Answer 1

May 7 DR Inventory 8470(770*11)

CR Account payable 8470

may 31 DR work in process 5982(239*8+370*11)

CR INVENTORY     5982

In relation to purchase of material we debit the raw material inventory account because material is increasing and is an asset account,we credit cash if it material have been paid for or account payable if the material has not yet been paid for

in relation to requisition of material for production we credit the raw material inventory because material is decreasing and is an asset accountand we debit the work in process to assign the cost of materials to ongoing jobs respectively.