Entries for Materials GenX Furnishings manufactures designer

Entries for Materials GenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric Polyester filling Lumber Glue The materials purchased during June are summarized from the receiving reports as follows Fabric Polyester filling Lumber Glue Materials were requisitioned to individual jobs as follows $40,500 28,600 62,400 6,550 $440,000 180,000 360,000 40,000 Polyester Filling Fabric $205,000 110,000 130,000 Lumber Glue Total Job 601 Job 602 Job 603 Factory overhead-indirect materials Total $400,000 234,000 310,000 $34,800 34,800 $166,000 $333,000 $34,800 $978,800 $75,000 $120,000 88,000 55,000 125,000 36,000 $445,000

Solution

Part a - Journal entry for purchase of material

Working Note 1 - Calculation of total material purchased

Part b - Journal entry for requisition of material

Part c - Calculation of June 30 balances of Material ledger

Accounts Title	Debit	Credit
Material	$1020000
Accounts Payable		$1020000
(Material Purchased on account are debited to material and credited to accounts payable as liability) (Working Note 1)