The following accounts are maintained by the Sprague Manufacturing Company in it
ID: 2353982 • Letter: T
Question
The following accounts are maintained by the Sprague Manufacturing Company in its general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. The materials account had a debit balance of $40,000 on November 1. A summary of material transactions for November shows: (1) Materials acquired on account, $62,000 (2) Direct materials issued, $58,500 (3) Direct materials returned to storeroom, $1,200 (4) Indirect materials issued, $3,600 (5) Indirect materials returned to storeroom, $550 (6) Materials on hand were $200 less than the stores ledger balance a. Prepare journal entries to record the materials transactions. b. Post the journal entries to T-accounts. c. What is the balance of the materials account on November 30?Explanation / Answer
Dr Mat Cr 40000 58500 62000 3600 1200 200 (loss of stock t/f to p/l) 550 41450 (stock in hand) Dr WIP Cr 58500 1200 57300 (t/f to FG A/c) Dr F. OH Cr 3600 550 3050 (t/f to FG A/c) Dr Payables Cr 62000 62000 (balance of payables)