Question

On May 7, Hatch Company purchased on account 490 units of raw materials at $20 per unit. During May, raw materials were requisitioned for production as follows: 211 units for Job 200 at $16 per unit and 186 units for Job 305 at $20 per unit.Journalize the entry on May 7 to record the purchase. If an amount box does not require an entry, leave it blank. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTSBergan CompanyGeneral Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
560 Depreciation Expense-Factory
590 Miscellaneous Expense
710
Interest Expense
Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Hatch Company

Journal Entries:

May 7:

Debit 131 Materials $9,800

Credit 210 Accounts Payable $9,800

To record the purchase of materials on account.

May 31: Debit 132 Work in Process:

Job 200 $3,376

Job 305 $3,720

Credit Materials $7,096

To record materials requisitioned for production.

Step-by-step explanation:

a) Data and Analysis:

May 7: Materials $9,800 Accounts payable $9,800 (490 * $20)

May 31: Work in Progress:

Job 200 $3,376 (211 * $16)

Job 305 $3,720 (186 * $20)

Materials $7,096