Entries for Materials

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	$25,200
Polyester filling	7,600
Lumber	56,400
Glue	2,400

The materials purchased during June are summarized from the receiving reports as follows:

Fabric	$122,700
Polyester filling	170,600
Lumber	336,200
Glue	11,700

Materials were requisitioned to individual jobs as follows:

	Fabric		Polyester Filling		Lumber		Glue		Total
Job 601	$46,600		$58,700		$157,000				$262,300
Job 602	35,900		63,800		137,500				237,200
Job 603	33,100		43,300		76,400				152,800
Factory overhead-indirect materials							$6,100		6,100
Total	$115,600		$165,800		$370,900		$6,100		$658,400

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.

a.	Materials
	Accounts Payable

Feedback

a. Increase materials inventory and a liability for the total of purchases.

b. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank.

b.	Work in Process
	Factory Overhead
	Materials

Feedback

b. Increase the work in process for direct materials for the Jobs and factory overhead for the indirect materials.

c. Determine the June 30 balances that would be shown in the materials ledger accounts.

	Fabric	Polyester Filling	Lumber	Glue
Balance, June 30	$	$	$	$