Question

Journalize the following transactions for Tamarisk Company.

(a) Purchased 6,500 units of raw materials on account for $12,200. The standard cost was $13,000.
(b) Issued 6,210 units of raw materials for production. The standard units were 6,360.

Answer 1

Transaction a.

Debit : Raw Materials $12,200

Credit : Accounts Payable $12,200

Transaction b.

Debit : Work in Process $11,656

Credit :Raw Materials $11,656

Step-by-step explanation:

We use the actual costs to account for the purchase and transfer of materials to production.

Unit Cost = Total Cost ÷ Total units purchased = $1.88