Chapter 2, Problem 7P

Terrill’s Transmissions 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:

The following transactions were completed during November:

1. a. Materials purchases on account during the month, $74,000.
2. b. Materials requisitioned during the month:
   1. 1. Direct materials, $57,000.
   2. 2. Indirect materials, $11,000.
3. c. Direct materials returned by factory to storeroom during the month, $1,100.
4. d. Materials returned to vendors during the month prior to payment, $2,500.
5. e. Payments to vendors during the month, $68,500.

Required:

1. 1. Prepare general journal entries for each of the transactions.
2. 2. Post the general journal entries to T-accounts.
3. 3. Balance the accounts and report the balances of November 30 for the following:
   1. a. Cash
   2. b. Materials
   3. c. Accounts Payable