Question: An examination of Buckhorn Fabricators records reveals the following transactions a

An examination of Buckhorn Fabricators’ records reveals the following transactions:
a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ $.52 per gal.
b. Production returned to the storeroom materials that cost $775.
c. Materials valued at $770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process.
d. Defective material, purchased on account, was returned to the vendor. The material returned cost $234.
e. Goods sold to a customer, on account, for $5,000 (cost $2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed.
f. Materials requisitioned totaled $22,300, of which $2,100 represented supplies used.
g. Materials purchased on account totaled $25,500. Freight on the materials purchased was $185.
h. Direct materials returned to the storeroom amounted to $950.
i. Scrap materials sent to the storeroom were valued at an estimated selling price of $685 and treated as a reduction in the cost of all jobs worked on during the period.
j. Spoiled work sent to the storeroom valued at a sales price of $60 had production costs of $200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period.
k. The scrap materials in (i) were sold for $685 cash.
Record the entries for each transaction.

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  • CreatedMarch 31, 2015
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