Mystic Manufacturing Company maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead,
Question:
Mystic Manufacturing Company maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. On June 1, the materials account had a debit balance of $5,000. Following is a summary of materials transactions for the month of June:
1. Materials purchased, $23,750.
2. Direct materials requisitioned to production, $19,250.
3. Direct materials returned to storeroom, $1,200.
4. Indirect materials requisitioned to production, $2,975.
5. Indirect materials returned to storeroom, $385.
a. Prepare journal entries to record the materials transactions. b. Post the journal entries to ledger accounts (in T-account form).
c. What is the balance of the materials inventory account at the end of the month?
Step by Step Answer:
a 1 Materials 23750 Accounts Payable 23750 2 Work in Process 1...View the full answer
