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...
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