Fabric $ 56,000
Polyester filling 16,800
Lumber 125,300
Glue 5,460
The materials purchased during May are summarized from the receiving reports as follows:
Fabric $282,240
Polyester filling 392,000
Lumber 770,000
Glue 27,300
Materials were requisitioned to individual jobs as follows:
Fabric
Polyester
Filling Lumber Glue Total
Job 91 $106,400 $134,400 $358,400 $ 599,200
Job 92 81,750 121,000 312,500 515,250
Job 93 75,600 98,700 175,000 349,300
Factory overhead—indirect
materials $29,000 29,000
Total $263,750 $354,100 $845,900 $29,000 $1,492,750
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 May.
b. Journalize the entry to record the requisition of materials in May.
c. Determine the May 31 balances that would be shown in the materials ledger accounts.
Answer:
a.
Materials* 1,471,540
Accounts Payable 1,471,540
* $282,240 + $392,000 + $770,000 + $27,300
b.
Work in Process 1,463,750
Factory Overhead 29,000
Materials 1,492,750
c.
Polyester
Fabric
Filling Lumber Glue
Balance, May 1………………………… $ 56,000 $ 16,800 $ 125,300 $ 5,460
May purchases……………………… 282,240 392,000 770,000 27,300
Less May requisitions………………… (263,750) (354,100) (845,900) (29,000)
Balance, May 31……………………… $ 74,490 $ 54,700 $ 49,400 $ 3,760