FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Entries for materials

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

Fabric  $40,500
Polyester filling 28,600
Lumber 62,400
Glue 6,550

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

Fabric  $ 440,000
Polyester filling 130,000
Lumber 360,000
Glue 40,000

Materials were requisitioned to individual jobs as follows:

 

Materials were requisitioned to individual jobs as follows:
Polyester
Filling
Total
Fabric
$205,000
Lumber
Glue
Job 601
$ 75,000
$120,000
$400,000
Job 602
110,000
36,000
88,000
234,000
Job 603
130,000
55,000
125,000
310,000
Factory overhead-indirect
materials
$34,800
$34,800
34,800
Total
$445,000
$166,000
$33,000
$978,800
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.
b. Journalize the entry to record the requisition of materials in June.
c. Determine the June 30 balances that would be shown in the materials
ledger accounts.
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Transcribed Image Text:Materials were requisitioned to individual jobs as follows: Polyester Filling Total Fabric $205,000 Lumber Glue Job 601 $ 75,000 $120,000 $400,000 Job 602 110,000 36,000 88,000 234,000 Job 603 130,000 55,000 125,000 310,000 Factory overhead-indirect materials $34,800 $34,800 34,800 Total $445,000 $166,000 $33,000 $978,800 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. b. Journalize the entry to record the requisition of materials in June. c. Determine the June 30 balances that would be shown in the materials ledger accounts.
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