Entries for Materials

Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:

Fabric	$24,300
Polyester filling	7,300
Lumber	54,400
Glue	2,300

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

Fabric	$122,000
Polyester filling	169,600
Lumber	334,300
Glue	11,600

Materials were requisitioned to individual jobs as follows:

	Fabric		Polyester Filling		Lumber		Glue		Total
Job 601	$46,400		$58,500		$156,400				$261,300
Job 602	35,700		63,600		136,900				236,200
Job 603	32,900		43,200		76,100				152,200
Factory overhead-indirect materials							$6,000		6,000
Total	$115,000		$165,300		$369,400		$6,000		$655,700

The glue is not a significant cost, so it is treated as indirect materials (factory overhead).

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

a.	Accounts PayableCashFactory OverheadMaterialsWork in ProcessMaterials	Materials	Materials
	Accounts PayableCashFactory OverheadMaterialsWork in ProcessAccounts Payable	Accounts Payable	Accounts Payable

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

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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.	Accounts PayableAccounts ReceivableCashMaterialsWork in ProcessWork in Process	Work in Process	Work in Process
	Accounts PayableAccounts ReceivableCashFactory OverheadMaterialsFactory Overhead	Factory Overhead	Factory Overhead
	Accounts PayableCashFactory OverheadMaterialsWork in ProcessMaterials	Materials	Materials

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

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

	Fabric	Polyester Filling	Lumber	Glue
Balance, June 30	$fill in the blank 83247e03902ffe0_1	$fill in the blank 83247e03902ffe0_2	$fill in the blank 83247e03902ffe0_3	$fill in the blank 83247e03902ffe0_4

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c. Start with the beginning balance and add the purchases and subtract the requisitions.

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Partially correct