Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric $67,960 Polyester filling 19,890 Lumber 148,560 Glue 6,070 The materials purchased during June are summarized from the receiving reports as follows: Fabric $337,790 Polyester filling 469,000 Lumber 907,830 Glue 31,910 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $127,540 $159,980 $398,310 $685,830 Job 602 95,220 149,080 370,910 615,210 Job 603 92,430 118,690 212,030 423,150 Factory overhead—indirect materials $33,440 33,440 Total $315,190 $427,750 $981,250 $33,440 $1,757,630 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.
Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric $67,960 Polyester filling 19,890 Lumber 148,560 Glue 6,070 The materials purchased during June are summarized from the receiving reports as follows: Fabric $337,790 Polyester filling 469,000 Lumber 907,830 Glue 31,910 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $127,540 $159,980 $398,310 $685,830 Job 602 95,220 149,080 370,910 615,210 Job 603 92,430 118,690 212,030 423,150 Factory overhead—indirect materials $33,440 33,440 Total $315,190 $427,750 $981,250 $33,440 $1,757,630 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
| Fabric | $67,960 |
| Polyester filling | 19,890 |
| Lumber | 148,560 |
| Glue | 6,070 |
The materials purchased during June are summarized from the receiving reports as follows:
| Fabric | $337,790 |
| Polyester filling | 469,000 |
| Lumber | 907,830 |
| Glue | 31,910 |
Materials were requisitioned to individual jobs as follows:
| Fabric | Polyester Filling | Lumber | Glue | Total | |
| Job 601 | $127,540 | $159,980 | $398,310 | $685,830 | |
| Job 602 | 95,220 | 149,080 | 370,910 | 615,210 | |
| Job 603 | 92,430 | 118,690 | 212,030 | 423,150 | |
| Factory overhead—indirect materials | $33,440 | 33,440 | |||
| Total | $315,190 | $427,750 | $981,250 | $33,440 | $1,757,630 |
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. | |
Transcribed Image Text:c. Determine the June 30 balances that would be shown in the materiais leoger accounts.
Fabric
Polyester Filling
Lumber
Glue
Balance, June 30
Transcribed Image Text: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 *
*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on
a joumal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
2
4
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education