Fairfield Companys raw materials inventory transactions for

Fairfield Company\'s raw materials inventory transactions for the most recent month are summarized here Beginning raw materials Purchases of raw materials Raw materials issued $ 10,000 107,000 Materials requisition 1445 Materials requisition 1446 Materials requisition 1447 42,500 For Job 101 33.000 For Job 102 10,500 Used on multiple jobs 1. & 2. Prepare the journal entries for materials. (lf no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.) View transaction list 1 Record the purchase on account of raw materials 2 Record the issuance of raw materials to production Credit Note : journal entry has been entered Record entry Clear entry View general journal

Solution

Solution : Journal Entries

1.Purchase of raw material

Raw material inventory A/c ---- Dr 107,000

To Accounts payable/cash /Bank A/c 107,000 ( being materials purchased on account )

2. Record issuance of raw materials to Production : ( assuming there are multiple processes and from work in process it would move to finished goods)

Work in Process - Job 101 ....Dr 42,500

Work in Process - Job 102.... Dr 33,000

Work in Process - Multiple Jobs ... Dr 10,500

To Raw Material inventory A/c 86,000 ( being raw materials allocated to various jobs )