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Journalize the following entries for the month:

a. Materials are purchased to produce 960 units.
b. Conversion costs are applied to 910 units of production.
c. The cell completes 860 units, which are placed into finished goods.

User Dfogni
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1 Answer

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Answer:

Journal Entries without $ amounts:

a. Debit Materials Inventory for 960 units

Credit Cash Account or Accounts Payable for 960 units.

To record the purchase of materials for the production of 960 units

Debit Work in process for 960 units

Credit Materials Inventory for 960 units

To record the transfer of materials to work in process.

b. Debit Conversion Costs for 910 units

Credit Cash Account for 910 units

To record conversion expenses.

Debit Work in process for conversion costs

Credit Conversion Costs

To record the transfer of conversion costs to WIP.

c. Debit Finished Goods Inventory for 860 units

Credit Work in Process for 860 units

To record the transfer of 860 units out of WIP, (materials and conversion costs).

Step-by-step explanation:

Journals serve multi-purposes for the initial recording of business transactions. They also play important roles for period-end and other adjustments. Journals come in hand for closing entries of transactions. Importantly, they identify the accounts that are debited and credited respectively. There are many kinds of journals for various purposes, from the general to so many of the specialized kinds. We can even use journal entries to record exchange of quantities, not only dollar amounts, as demonstrated above.

User Whytheq
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