GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric $ 67,910 Polyester filling 19,920 Lumber 151,860 Glue 6,750 The materials purchased during June are summarized from the receiving reports as follows: Fabric $338,580 Polyester filling 470,870 Lumber 901,370 Glue 31,670 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $126,370 $161,120 $397,120 $ 684,610 Job 602 98,480 146,210 370,720 615,410 Job 603 93,880 115,240 205,800 414,920 Factory overhead-indirect materials $35,520 35,520 Total $318,730 $422,570 $973,640 $35,520 $1,750,460 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). Required: a. Journalize the June 1 entry to record the purchase of materials in June.* b. Journalize the June 3 entry to record the requisition of materials in June.* c. Determine the June 30 balances that would be shown in the materials ledger accounts. *Refer to the Chart of Accounts for exact wording of account titles.
GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric $ 67,910 Polyester filling 19,920 Lumber 151,860 Glue 6,750 The materials purchased during June are summarized from the receiving reports as follows: Fabric $338,580 Polyester filling 470,870 Lumber 901,370 Glue 31,670 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $126,370 $161,120 $397,120 $ 684,610 Job 602 98,480 146,210 370,720 615,410 Job 603 93,880 115,240 205,800 414,920 Factory overhead-indirect materials $35,520 35,520 Total $318,730 $422,570 $973,640 $35,520 $1,750,460 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). Required: a. Journalize the June 1 entry to record the purchase of materials in June.* b. Journalize the June 3 entry to record the requisition of materials in June.* c. Determine the June 30 balances that would be shown in the materials ledger accounts. *Refer to the Chart of Accounts for exact wording of account titles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
| Fabric | $ 67,910 |
| Polyester filling | 19,920 |
| Lumber | 151,860 |
| Glue | 6,750 |
The materials purchased during June are summarized from the receiving reports as follows:
| Fabric | $338,580 |
| Polyester filling | 470,870 |
| Lumber | 901,370 |
| Glue | 31,670 |
Materials were requisitioned to individual jobs as follows:
| Fabric | Polyester Filling | Lumber | Glue | Total | |
| Job 601 | $126,370 | $161,120 | $397,120 | $ 684,610 | |
| Job 602 | 98,480 | 146,210 | 370,720 | 615,410 | |
| Job 603 | 93,880 | 115,240 | 205,800 | 414,920 | |
| Factory |
$35,520 | 35,520 | |||
| Total | $318,730 | $422,570 | $973,640 | $35,520 | $1,750,460 |
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
Required:
| a. Journalize the June 1 entry to record the purchase of materials in June.* | |||
| b. Journalize the June 3 entry to record the requisition of materials in June.* | |||
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
|
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GenX Furnishings Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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