Gorman Furniture Company manufactures furniture. Gorman uses a job order cost system. Balances on April 1 from

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Gorman Furniture Company manufactures furniture. Gorman uses a job order cost system. Balances on April 1 from the materials ledger are as follows:

Fabric...........................$40,000Polyester filling.............12,000Lumber..........................89,500Glue.................................3,900

The materials purchased during April are summarized from the receiving reports as follows:Fabric........................$201,600Polyester filling..........280,000Lumber.......................550,000Glue...............................19,500Materials were requisitioned to individual jobs as follows:

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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 April.b. Journalize the entry to record the requisition of materials in April.c. Determine the April 30 balances that would be shown in the materials ledger accounts.

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Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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