The following accounts are maintained by the XYZ Manufacturing Company in its ge
ID: 2567842 • Letter: T
Question
The following accounts are maintained by the XYZ Manufacturing Company in its general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. The materials account had a debit balance of S40,000 on November 1. A summary of material transactions for November shows: (1) Materials purchased on account, $62,000 (2) Direct materials issued, S58,500 (3) Direct materials returned to storeroom, $1,200 (4) Indirect materials issued, $3,600 (5) Indirect materials returned to storeroom, S550 Materials on hand were $200 less than the stores ledger balance Prepare journal entries to record the materials transactions.Explanation / Answer
JOURNAL ENTRIES:
(1) Dr. Materials $62,000
Cr. Accounts Payable $62,000
(2) Dr. Work in Process $58,500
Cr. Materials $58,500
(3) Dr. Materials $1,200
Cr. Work in Process $1,200
(4) Dr. Factory Overhead $3,600
Cr. Materials $3,600
(5) Dr. Materials $550
Cr. Factory Overhead $550
(6) Dr. Factory Overhead $200
Cr. Materials $200