Question

On May 7, Keenan Company purchased on account 820 units of raw materials at $20 per unit. During May, raw materials were requisitioned for production as follows: 279 units for Job 200 at $17 per unit and 336 units for Job 305 at $20 per unit.

Chart Of Accouns Bergan 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. May 7 Journalize the entry on May 31 to record the requisition from the materials storeroom.

Answer 1

Keenan Company

Journal Entries

Date Particulars Debit Credit

May 7 Materials Inventory 16400Dr

Accounts Payable 16400Cr

Materials Purchased on account.

May 31 Work In Process Job 200 4743 Dr

Work In Process Job 305 6720 Dr

Materials Inventory 11463 Cr

Materials Requisitioned to jobs.

Calculations:

Work In Process Job 200= 279 units * $17= 4743

Work In Process Job 305 = 336 units *20= 6720