Entries for Materials 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 $36,500 Polyester filling 25,700 Lumber 56,200 Glue 5,900 The materials purchased during June are summarized from the receiving reports as follows: Fabric $396,000 Polyester filling 162,000 Lumber 324,000 Glue 36,000 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $185,000 $68,000 $108,000 - $361,000 Job 602 99,000 32,000 79,000 - 210,000 Job 603 117,000 50,000 113,000 - 280,000 Factory overhead-indirect materials - - - $31,300 31,300 Total $401,000 $150,000 $300,000 $31,300 $882,300 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in June. If an amount box does not require an entry, leave it blank. Materials Accounts Payable b. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank. Work In Process Factory Overhead Materials c. Determine the June 30 balances that would be shown in the materials ledger accounts. Fabric Polyester Filling Lumber Glue Balance, June 30 $ $ $ $ please answer all parts.
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.
Entries for Materials
Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a
| Fabric | $36,500 |
| Polyester filling | 25,700 |
| Lumber | 56,200 |
| Glue | 5,900 |
The materials purchased during June are summarized from the receiving reports as follows:
| Fabric | $396,000 |
| Polyester filling | 162,000 |
| Lumber | 324,000 |
| Glue | 36,000 |
Materials were requisitioned to individual jobs as follows:
| Fabric | Polyester Filling | Lumber | Glue | Total | |
| Job 601 | $185,000 | $68,000 | $108,000 | - | $361,000 |
| Job 602 | 99,000 | 32,000 | 79,000 | - | 210,000 |
| Job 603 | 117,000 | 50,000 | 113,000 | - | 280,000 |
| Factory |
- | - | - | $31,300 | 31,300 |
| Total | $401,000 | $150,000 | $300,000 | $31,300 | $882,300 |
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a.
| Materials | ||
| Accounts Payable |
b. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank.
| Work In Process | ||
| Factory Overhead | ||
| Materials |
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
| Fabric | Polyester Filling | Lumber | Glue | |
| Balance, June 30 | $ | $ | $ | $ |
please answer all parts.
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