Chapter 2, Problem 5E

Entries for materials

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	$40,500
Polyester filling	28,600
Lumber	62,400
Glue	6,550

The materials purchased during June are summarized from the receiving reports as follow

Fabric	$440,000
Polyester filling	180,000
Lumber	360,000
Glue	40,000

Materials were requisitioned to individual jobs as follow

	Fabric	Polyester Filling	Lumber	Glue	Total
Job 601	$205,000	$ 75,000	$120,000		$400,000
Job 602	110,000	36,000	88,000		234,000
Job 603	130,000	55,000	125,000		310,000
Factory overhead—indirect materials				$34,800	34,800
Total	$445,000	$166,000	$333,000	$34,800	$978,800

The glue is not a significant cost, so it is treated as indirect materials (factory overhead).

A. Journalize the entry to record the purcha.se of materials in June.

B. Journalize the entry to record the requisition of materials in June.

C. Determine the June 30 balances that would lie shown in the materials ledger accounts.