Question

Terrill’s Transmissions uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows:
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$82,250
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,500
Work in process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000
Accounts payable (credit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . none
The following transactions were completed during November:
a. Materials purchases on account during the month, \$74,000.
b. Materials requisitioned during the month:
1. Direct materials, \$57,000.
2. Indirect materials, \$11,000.
c. Direct materials returned by factory to storeroom during the month, \$1,100.
d. Materials returned to vendors during the month prior to payment, \$2,500.
e. Payments to vendors during the month, \$68,500.
Required:
1. Prepare general journal entries for each of the transactions.
2. Post the general journal entries to T-accounts.
3. Balance the accounts and report the balances of November 30 for the following:
a. Cash
b. Materials
c. Accounts Payable

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