On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit. Journalize the entry on August 4 to record the purchase and on August 24 to record the requisition from the materials storeroom.
Answer:
Aug. 4 Materials 168,000
Accounts Payable 168,000
$168,000 = 12,000 × $14.
24 Work in Process* 126,800
Materials 126,800
* Job 40
$ 40,000
= 5,000 × $8
Job 42 86,800 = 6,200 × $14
Total $126,800
