Question

Entries for Materials

GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:

Fabric	$21,800
Polyester filling	6,500
Lumber	48,800
Glue	2,100

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

Fabric	$107,000
Polyester filling	148,700
Lumber	293,200
Glue	10,200

Materials were requisitioned to individual jobs as follows:

	Fabric		Polyester Filling		Lumber		Glue		Total
Job 601	$40,700		$51,300		$137,200				$229,200
Job 602	31,300		55,800		120,100				207,200
Job 603	28,900		37,900		66,700				133,500
Factory overhead-indirect materials							$5,300		5,300
Total	$100,900		$145,000		$324,000		$5,300		$575,200

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.

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.

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

Solution a& b:

Journal Entries - Genx Furnishing Company
Event	Particulars	Debit	Credit
a	Raw material inventory Dr	$559,100.00
	To Accounts payable		$559,100.00
	(To record purchase of raw material)
b	Work In Process inventory Dr	$569,900.00
	Factory overhead Dr	$5,300.00
	To Raw material inventory		$575,200.00
	(To record material used in production)

Solution c:

Computation of balance in material ledger account
Particulars	Fabric	Polyster Filling	Lumber	Glue
Beginning inventory	$21,800.00	$6,500.00	$48,800.00	$2,100.00
Add: Purchases	$107,000.00	$148,700.00	$293,200.00	$10,200.00
Less: Requisitions	$100,900.00	$145,000.00	$324,000.00	$5,300.00
Balance, June 30	$27,900.00	$10,200.00	$18,000.00	$7,000.00