Journalizing materials activities Overfurd, Inc. uses a perpetual inventory system to account for all inventory transactions. The
Question:
Journalizing materials activities Overfurd, Inc. uses a perpetual inventory system to account for all inventory transactions. The company is a manufacturing business producing electric cables. Below are selected inventory transactions.
a. Purchased raw material costing $67,000 on open account.
b. Issued $42,400 of material to production, of which $37,200 for direct materials.
C. $6,700 of the materials purchased in a are defective and are returned to the vendor for credit.
d. Paid the balance on the purchase in a.
e. Purchased $13,000 of material for cash.
f. $3,800 of direct materials issued at the end of last month are returned to the inventory storeroom.
g. Scrap material is sold for $1,400. The company does not treat scrap as a reduction in produc- tion cost.
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