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 $24,900
Polyester filling 7,500
Lumber 55,800
Glue 2,400
The materials purchased during June are summarized from the receiving reports as follows:
Fabric $121,300
Polyester filling 168,600
Lumber 332,400
Glue 11,500
Materials were requisitioned to individual jobs as follows:
Fabric Polyester Filling Lumber Glue Total
Job 601 $43,700 $55,100 $147,300 $246,100
Job 602 33,600 59,900 128,900 222,400
Job 603 31,000 40,600 71,700 143,300
Factory overhead-indirect materials $5,700 5,700
Total $108,300 $155,600 $347,900 $5,700 $617,500
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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Tundexi Tundexi · Answer 1 · 2021-01-31T08:09:33+01:00

Answer:

a. Date Account Titles and Explanation Debit Credit

June 1 Raw materials inventory - Fabric A/c $121,300

Raw materials inventory - Polyster A/c $168,600

Raw materials inventory - Lumber A/c $332,400

Raw materials inventory - Glue A/c $11,500

To account payable $633,800

(Being recorded for the purchase of materials in June)

b. Date Account Titles and Explanation Debit Credit

June 3 Work in process - Job 601 A/c $222,400

Raw materials inventory - Fabric A/c $43,700

Raw materials inventory - Polyster A/c $55,100

Raw materials inventory - Lumber A/c $147,300

Work in process - Job 602 A/c $143,300

Raw materials inventory - Fabric A/c $31,000

Raw materials inventory - Polyster A/c $40,600

Raw materials inventory - Lumber A/c $71,700

Work in process - Job 603 A/c $222,400

Raw materials inventory - Fabric A/c $33,600

Raw materials inventory - Polyster A/c $59,900

Raw materials inventory - Lumber A/c $128,900

Factory Overhead A/c $5,700

To Raw materials inventory - Glue A/c $5,700

c. Particulars Fabrics Polyster Lumber Glue

Beg. Inventory June 1 $24,900 $7,500 $55,800 $2,400

Add: Purchases $121,300 $168,600 $332,400 $11,500

$146,200 $175,100 $388,200 $13,900

Less: Issued to production $108,300 $155,600 $347,900 $5,700

End. Inventory June 30 $37,900 $20,500 $40,300 $8,200