Question

Five material requisitions (MR) forms were received by the materials storeroom of the Tarjee, Inc. during the first week of September. MR101 was for $280 of direct materials for job number 1501. MR102 was for $550 of direct materials for job number 1502. MR103 was for $130 of indirect materials issued to the factory floor. MR 104 was for $420 of direct materials issued to job number 1501. MR105 was for $530 of direct materials issued to job number 1503. Prepare summary journal entries to record the issuance of these materials. (Hint: There should be a separate journal entry for direct and indirect materials.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Answer and Explanation:

The journal entries are shown below:

1. Work in process inventory Dr ($280 + $550 + $420 + $530) $1,780

To Raw material inventory $1,780

(Being direct material used is recorded)

For recording this work in process is debited as it increased the assets and credited the raw material as it decreased the assets

2. Manufacturing overhead Dr $130

To Raw material inventory $130

(Being indirect material used is recorded)

For recording this the manufacturing overhead account is debited and credited the raw material as it decreased the assets