Question

On May 7, Hatch Company purchased on account 700 units of raw materials at $19 per unit. During May, raw materials were requisitioned for production as follows: 217 units for Job 200 at $17 per unit and 336 units for Job 305 at $19 per unit. Journalize the entry on May 7 to record the purchase. If an amount box does not require an entry, leave it blank.

Answer 1

Answer and Explanation:

The journal entry is shown below:

On May 7

Raw material Dr (700 units × $19) $13,300

To Account payable $13,300

(being the raw material is purchase on an account is recorded)

Here the raw material is debited as it increased the assets and credited the account payable as it also increased the liabilities