Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1
Question:
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 ........................... $36,500
Polyester filling ............. 25,700
Lumber .......................... 56,200
Glue .................................. 5,900
The materials purchased during June are summarized from the receiving reports as follows:
Fabric ............................. $396,000
Polyester filling ............... 162,000
Lumber ............................ 324,000
Glue .................................... 36,000
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 June.
b. Journalize the entry to record the requisition of materials in June.
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
Step by Step Answer:
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider