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-   -   Accounting For Materials : Journalizing (https://www.askmehelpdesk.com/showthread.php?t=381457)

  • Jul 30, 2009, 03:14 AM
    Smexy
    Accounting For Materials : Journalizing
    Dino's specialty Clothing Inc. 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 the month of November:

    a. Materials purchased during the month, $84,000.
    b. Materials requisitioned during the month:
    1. Direct Materials, $57,000.
    2. Indirect Materials, $11,000.
    c.Direct Materials returned by factory overhead to storeroom during the month, $1,100.
    d. Materials returned to vendors during the month prior to payment, $3,500.
    e. Payments to vendors during the month, $63,500.

    Required:

    1. prepare general journal entries for each of the transactions.
    2. post general 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

    My answers:

    a)dr. Materials $84,000
    Cr. Accounts Payable $84,000

    b)dr direct materials 57,000
    Dr indirect materials 11,000
    Cr. Materials 68,000

    c)dr. Materials 1,100
    Cr. Work in Process 1,100

    d)dr. accounts payable 3,500
    Cr. Materials 3,500

    e)dr. accounts payable 63,500
    Cr. Cash 63,500

    Is there something wrong?

    By the way, I've done the T accounts already and I got these balances:

    Cash is 18,750
    Materials is 43,100
    Accounts payable is 38,000



    CHECK...
  • Jul 30, 2009, 03:19 AM
    Chey5782
    Hiee smexy! I highly recommend that you do your own homework! This isn't a homework site! Thanks!
  • Jul 30, 2009, 04:09 AM
    Smexy

    I know I know... I just want to know the journal entries that I should be using... because our professor hasn't taught us regarding this chapter yet... I'm just doing an advance study... so I was just asking for help...
  • Jul 30, 2009, 09:57 PM
    morgaine300

    Chey? Looks to me like it was at least started. That's fine.

    Smexy - I think because you have not done this chapter yet that there are too many things you do not understand yet to be attempting this problem. D & e are correct, but probably because that really isn't anything new - a payment on account is a payment on account, and returning something you purchased for credit is always the same. As for a, the problem doesn't specify that the materials were purchased on account. It doesn't really say at all.

    The reason I think you are not ready to do the problem is that b & c are way off, and are showing me that you don't know the flow of accounts or understand what Work in Process is, what direct and indirect mean, etc. Those are very basic ideas to doing this work. You're even using account names that don't exist. (Well, they could, but it wouldn't be normal.)

    I don't have a problem explaining some of it, but I'm wondering how much you've actually gone over the chapter as of yet, and whether it would be better to wait until this has been lectured on. Because otherwise I feel that I'd be trying to post in one thread on an entire chapter, and that's a little infeasible. If you'd rather ask specific questions about what in the chapter you don't understand... perhaps one question at a time.
  • Jul 31, 2009, 09:35 PM
    Smexy

    Err... but it was given as homework for an advance study...

    By the way I have a new journal entry for letter b.

    b)dr work in process (direct materials) 57,000
    Dr facctory overhead (indirect materials) 11,000
    Cr. Materials 68,000
  • Jul 31, 2009, 10:12 PM
    morgaine300
    Quote:

    Err... but it was given as homework for an advance study...
    If you actually have a professor who is going to teach this (i.e. not online), why is it expected that you do your homework first? That makes no sense. (I should stop trying to make sense of teachers. Yesterday I was working with one who collects homework on the day of the test, meaning no one knows if they did it right or not. Huh?)

    At any rate... it doesn't change the facts. Like that I still can't lecture an entire chapter in a thread. (Though sometimes it feels like I do. :p)


    Quote:

    b)dr work in process (direct materials) 57,000
    Dr facctory overhead (indirect materials) 11,000
    Cr. Materials 68,000
    That's correct.

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