Answer:
a) Materials purchased on account, $636,560:
Materials Inventory 636,560
Accounts Payable 636,560
b) Materials requisitioned, $534,710, of which $69,510 was for general factory use:
Work in Process 465,200
Materials Inventory (Direct Materials) 465,200
Factory Overhead 69,510
Materials Inventory (Indirect Materials) 69,510
Step-by-step explanation:
In entry (a), when materials are purchased on account, the Materials Inventory account is increased to reflect the inventory acquired, and the Accounts Payable account is increased to show the liability owed to the supplier.
In entry (b), when materials are requisitioned for use in production, the Work in Process account is debited with the cost of direct materials used in the specific job. This increases the cost of the job in progress. The Materials Inventory account is credited with the same amount, reducing the inventory balance.
Additionally, for general factory use, the Factory Overhead account is debited with the cost of indirect materials used. This cost is not directly attributable to a specific job but is necessary for the overall factory operations. The Materials Inventory account is credited with the same amount to reduce the inventory balance specifically for indirect materials.