Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on April
Question:
Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on April 1 from the materials ledger are as follows:
Fabric ...........................$ 67,500
Polyester filling ............... 20,200
Lumber ........................150,000
Glue ............................ 6,550
The materials purchased during April are summarized from the receiving reports as follows:
Fabric ..........................$338,400
Polyester filling .............. 470,400
Lumber ........................ 902,400
Glue ............................ 32,400
Materials were requisitioned to individual jobs as follows:
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 April.
b. Journalize the entry to record the requisition of materials in April.
c. Determine the April 30 balances that would be shown in the materials ledger accounts.
Step by Step Answer:
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac