Journalizing materials transactions Spillane’s Specialty Clothing Inc. uses a job order...

Journalizing materials transactions

Spillane’s Specialty Clothing Inc. uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows:

Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $82,250

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,500

Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000

Accounts payable (credit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . none

The following transactions were completed during November:

a. Materials purchases on account during the month, $74,000.

b. Materials requisitioned during the month:

1. Direct materials, $57,000.

2. Indirect materials, $11,000.

c. Direct materials returned by factory to storeroom during the month, $1,100.

d. Materials returned to vendors during the month prior to payment, $2,500.

e. Payments to vendors during the month, $68,500.

Required:

1. Prepare general journal entries for each of the transactions.

2. Post the general journal entries to T-accounts.

3. Balance the accounts and report the balances of November 30 for the following:

a. Cash

b. Materials

c. Accounts Payable