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

Fabric .......................$ 3,750
Polyester filling .........9,000
Lumber ....................30,000
Glue ...........................1,500

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

Fabric ......................$ 52,000
Polyester filling ......100,000
Lumber ....................360,000
Glue ...........................18,000

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. Determine the total purchase of materials in August.

b. Determine the amounts of materials transferred to Work in Process and Factory Overhead during August.

c. Determine the August 31 balances that would be shown in the materials ledger accounts.

Transcribed Image Text:

Fabric Polyester Filling Lumber Glue Total Job 205 $10,000 $26,150 $105,050 $141,200 Job 206 16,250 34,200 94,750 145,200 Job 207 24,400 39,200 156,600 220,200 Factory overhead-indirect materials $18,850 18,850 Total $50,650 $99,550 $356,400 $18,850 $525,450