Question

job cost journal entries prior to the beginning of 2016, lowe company estimated that it would incur $264,000 of manufacturing overhead cost during 2016, using 24,000 direct labor hours to produce the desired volume of goods. on january 1,2016, beginning balances of materials inventory, work in process inventory, and finished goods inventory were $42,000, $-0-, and $64,500, respectively. required prepare general journal entries to record the following for 2016. a. purchased materials on account, $58,500.

Answer 1

raw materials inventory 58,500 debit

accoutns payable 58,500 credit

Step-by-step explanation:

Required prepare general journal entries to record the following for 2016. a. purchased materials on account, $58,500.

The raw materials inventory will increase for 58,500 which is the amount purchased. As the materials are an asset, we will debited.

We will also use an account to represent the debt we have with our providor.

We have an "account to pay" --> account payable

As this is a debt, we have a liability. Thus we credit to increase it-